* Equities bounce back as investors gird for earnings test

* Middle East tensions keep oil prices near 1-month high

* Inflation worries buoy yields, rate hike wagers

* US imposes new 50% tariffs on $20 billion worth of

Canadian products

(Updates with European afternoon trading)

By Ankur Banerjee and Johann M Cherian

July 21 (Reuters) - Global stocks rose on Tuesday,

underpinned by gains in technology stocks, as investors waited

for corporate earnings this week that could test an AI trade

under pressure, while mediation efforts in the Middle East kept

oil prices in check.

The U.S. and Iran traded fresh fire, and Yemen's

Tehran-aligned Houthis said they would impose a naval blockade

on Saudi Arabia, which risks further disrupting energy supplies

and pushed oil back above $90 a barrel. Gains in crude were

limited by optimism that the two sides could revive a fragile

ceasefire.

A senior Iranian official told Reuters on Monday that Tehran

had received a proposal from mediators for a 10-day ceasefire,

intended to pave the way for a lasting agreement to end the war

that began on February 28 with U.S.-Israeli attacks on Iran.

Brent crude futures were choppy on Tuesday, trading

slightly higher at $90.86 per barrel, nearing the previous day's

one-month high above $91.

"It seems to suggest that this isn't a total breakdown.

There are still channels for sort of talks to go on, which is

great news. Just quite how successful they will be is another

matter," said David Morrison, a senior market analyst at Trade

Nation.

Gains in tech stocks kept Europe's STOXX 600

afloat, while futures tracking the tech-heavy Nasdaq

led gains on Wall Street with a 1.3% rise. Chip

stocks including those of Micron Technology ( MU ) and Marvell ( MRVL )

were about 6% higher in premarket trading.

Trade was also in the spotlight after a Financial Times

report said that President Donald Trump was planning on

unleashing fresh duties on several countries this week, just

hours after he slapped 50% tariffs on Canadian imports worth

about $20 billion.

"I suppose there's a feeling that it's going to be watered

down, and ultimately, it's certainly not going to happen to the

tune of 50%," Morrison said earlier of Trump's tariff threat

against Canada.

AI'S EARNINGS TEST

Investor focus this week will be on earnings from companies

including Alphabet and Intel ( INTC ) to gauge the

impact of the war and whether the AI trade has more room to run,

given sky-high profit expectations for the second quarter.

July has been a rough month for global tech stocks, as

strong earnings from Asian chip bellwethers Samsung Electronics ( SSNLF )

and TSMC in recent weeks did little to

assuage concerns about high valuations and earnings growth.

"While market volatility may pick up as investors assess the

ongoing risks, we see a constructive macro and earnings backdrop

that should continue to support global equities in the coming

months," UBS analysts wrote in a note.

Escalating U.S.-Iran tensions have revived worries about

inflation and pushed Treasury yields higher. The 2-year note

yield, which typically moves in step with Federal

Reserve interest-rate expectations, was at 4.2%, down 1 basis

point on the day, following Monday's selloff, which pushed

yields up 4 basis points.

Traders are pricing in at least one rate hike from the Fed

this year, and a roughly 20% possibility of a second, according

to money markets.

The dollar hovered near one-week highs against a basket of

major currencies. The euro last bought $1.142,

while the Japanese yen was at 162.74 per dollar, still

within sight of 40-year lows, which is keeping traders on alert

for intervention from Tokyo.

Sterling was the worst-performing major currency, as

investors awaited the new government's fiscal plans following

the unexpected announcement of John Healey as the UK's new

finance minister. The pound was down for a fourth day, last

trading at $1.341, down 0.2%.

(Reporting by Ankur Banerjee in Singapore and Johann M Cherian

in Bengaluru; Editing by Kate Mayberry, Amanda Cooper and Anil

D'Silva)