* Oil prices drop back after 9% surge

* European stocks rise, Wall St futures edge up

* Bond markets steady after tough few days, JGB yield at

30-year high

(Updates throughout with European market moves)

By Marc Jones

LONDON, July 9 (Reuters) - Global share and bond markets and

oil prices steadied on Thursday after the week's reignition of

Middle East hostilities and heavy selling of AI chipmakers.

Oil prices dipped for only the second time in six days after

the United States launched fresh overnight strikes on Iran in

order, it said, to keep the Strait of Hormuz open to shipping.

Having warned that the interim ceasefire with Tehran was now

"over", U.S. President Donald Trump had also soothed some of the

most extreme worries, saying that despite the breakdown, he did

not expect a return to a full-fledged war.

Brent crude futures dropped back under $77 a barrel

in early London trading following a 9% jump in the last few days

that had briefly pushed them above $80 again.

Pressure eased on global borrowing costs too. Benchmark

10-year U.S. Treasury yields steadied at 4.56% after

a 10 basis point rise since Monday, while Germany's Bund yields

dipped 2 basis points to 3.069% in Europe.

In Asia though, Japan's 10-year yields had

hit 2.9%, the highest since 1996, while Australia's 10-year

government bond yields scaled a one-month peak of

4.933%.

HSBC's Chief Multi-Asset Strategist Max Kettner said the

bond markets remained highly sensitive to the Middle East

tensions given the potential implications for inflation and

global interest rates.

"In reality, the rates market is really following oil

prices," he said. "That has been clear over the last few days."

TECH VOLATILITY

European shares moved tentatively higher, helped by a

rebound in tech and AI stocks after a stumbling couple of weeks

for the high-flying sector.

The pan-European STOXX 600 index was up almost half

a percent with tech stocks up 1.3% as chipmaker

Siltronic surged more than 10%.

Global sentiment was also buoyed by a report that China

could allow domestic AI firms limited access to AI leader

Nvidia's ( NVDA ) H200 chips and signs that SK Hynix's $28

billion U.S. listing was more than seven times oversubscribed.

The offering from the South Korean chipmaker, which will

finance new factories and equipment to meet surging AI chip

demand, is set to be the world's second-biggest share sale after

SpaceX's SPCX.O record-breaking $85.7 billion IPO last month.

HSBC's Kettner said the 30-day "realised volatility" on

South Korea's KOSPI index was 75% currently. In comparison, a 7-

to 10- year U.S. Treasury exchange-traded fund traditionally has

realised volatily of around 3%.

"Imagine if you are an institutional investor. Who can

really buy in size an asset class with 75% realised volatility?"

Kettner said. HSBC went "underweight" on emerging market stocks

this week following the surge in key markets like Korea's.

MUTED CURRENCY MARKETS

Wall Street futures were 0.2% to 0.6% higher ahead of the

resumption of trading there later.

Currency markets were rather muted, meanwhile, with the

dollar barely budged, the yen stuck near a

40-year low and the euro, sterling and most

other European currencies also little changed on the day.

Wednesday's June FOMC minutes, the first under new Federal

Reserve Chair Kevin Warsh, had shown some growing concerns about

inflation. Markets have increased the implied probability of a

Fed hike this year to about 87%, according to CME FedWatch.

Gold edged up 0.8% to $4,109 an ounce as oil prices

eased.

Tim Waterer, chief market analyst at KCM Trade, said traders

were watching how the Middle East tensions develop from here.

"The possibility that the next move could be de-escalatory

is what's currently preventing oil from pushing meaningfully

higher," he said.

(Additional reporting by Stella Qiu in Sydney; editing by

Philippa Fletcher)