GLOBAL MARKETS-Stocks scale new peaks on retailer results; oil slips

* Europe stocks near highs; miners, energy weigh

* Wall Street equities advance, S&P and Nasdaq (Frankfurt: 813516 - news) at records

* VIX opens at lowest level since May 10

* World FX rates in 2017 http://tmsnrt.rs/2egbfVh (Changes dateline to New York; adds Wall Street open; updates throughout)

By Hilary Russ

NEW YORK, May 25 (Reuters) - World stock markets scaled fresh highs on Thursday, with key U.S. indexes lifted by rosy retailer results, while the U.S. dollar dipped and oil prices fell after top oil producers extended output cuts for a shorter period than expected.

The U.S. benchmark S&P 500 index and Nasdaq Composite opened at record highs, while the VIX "fear gauge" of expected volatility in the S&P 500 opened at 9.82, its lowest since May 10.

Gains were propelled by sturdy sales data at electronics retailer Best Buy (Swiss: BBY.SW - news) , lifting its shares as much as 17 percent as top gainer on the S&P 500. Robust results also boosted Tommy Hilfiger-owned PVH (NYSE: PVH - news) by 7 percent.

Oil prices fell as OPEC prepared to extend supply curbs by nine months to March 2018 to drain a glut that has depressed markets for almost three years. This was a shorter period of time for such limits than some market participants had expected.

The Dow Jones Industrial Average rose 90.95 points, or 0.43 percent, to 21,103.37, the S&P 500 gained 12.09 points, or 0.50 percent, to 2,416.48 and the Nasdaq Composite added 42.81 points, or 0.69 percent, to 6,205.83.

U.S. share indexes were boosted a day earlier after minutes from the Federal Reserve's May 2-3 meeting signaled its policymakers would hold off on raising interest rates soon until it is clear that a recent U.S. economic slowdown is temporary.

Federal funds futures imply traders see an 80.9 percent chance of a quarter point rate rise in June.

U.S. crude fell 1.15 percent to $50.77 per barrel and Brent was last at $53.48, down 0.89 percent on the day.

"A nine-month extension of the output cuts is already baked into prices," said Olivier Jakob, energy markets analyst at Swiss consultancy Petromatrix. "This shows there's not much more OPEC can do."

In Europe, the pan-European FTSEurofirst 300 index was little changed, losing just 0.03 percent. The pan-European STOXX 600 index was led lower by basic resources and energy companies earlier in the day; it still held close to 21-month highs.

Steelmakers were hit after iron ore prices fell for a third day, on concern over reduced Chinese demand.

MSCI (Frankfurt: 3HM.F - news) 's gauge of stocks across the globe gained 0.47 percent.

In the currency markets, the euro edged down 0.04 percent to $1.1213, pulling further away from Tuesday's 6 1/2-month high of $1.1268.

The dollar index, which measures the greenback against a basket of major currencies, fell 0.09 percent, as key currencies tracked the drop in oil prices.

U.S. bond yields dipped ahead of a $28 billion sale of seven-year notes. The benchmark 10-year yield was down 1.6 basis point on Thursday at 2.25 percent.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets (Additional reporting by Nigel Stephenson and Christopher Johnson in London, Tanya Agrawal in Bengaluru, Richard Leong in New York and Howard Schneider in Washington; Editing by Bernadette Baum)