(Updates to U.S. market open)

* Brent dips below $100 after Thursday's spike

* Markets see one-in-three chance of Fed rate hike next week

* Yen languishing at 40-year lows as dollar gains

* European shares inch up after Thursday's pounding

By Lawrence Delevingne, Shashwat Chauhan and Stella Qiu

July 24 (Reuters) - Global bond yields hovered near

multi-decade highs on Friday as high oil prices stemming from

the Middle East conflict stoked concerns about inflation and

rate hikes, while U.S. and European shares found little relief

from this week's lows.

News that the U.S. administration will impose higher tariffs on

goods from 60 trading partners also did not help the inflation

picture, with 30-year Treasury yields marching

towards their highest since 2007 and German 10-year Bund yields

- the benchmark for the euro zone - holding close to

their highest since 2011.

Wall Street stocks were little changed, with the Dow Jones

Industrial Average and the S&P 500 each about 0.1%

higher. The Nasdaq Composite fell 0.1%, witha roughly 2%

decline for shares of chipmaker Intel ( INTC ) despite bumper

results.

Tech stocks have been under pressure this week as investors

grow increasingly uneasy about multi-billion-dollar spending on

AI that has yet to yield conclusive evidence of paying off.

The pan-European STOXX 600 rose 0.6% after a more than

1% drop in the last session, on pace for a mild weekly gain.

Brent crude slipped 2.83% to $97.84 a barrel, after

surging 7% overnight to a two-month high of $102. Attacks by

Iran-aligned Houthis on Saudi tankers in the Red Sea risk

choking off a second crucial Middle East artery for global oil

supplies, alongside Iran's near-closure of the Strait of Hormuz.

President Donald Trump threatened "major military punishment"

for Iran and its Houthi allies, while the U.S. military

conducted a 13th consecutive night of attacks.

"The dollar has been going up for a few days so clearly the

risk has been building and the fact that oil has been at these

higher levels for several days has really started to work

through the cross-asset correlation," said Shaniel Ramjee,

co-head of multi-asset investment at Pictet Asset Management in

London.

Most major currencies were steady against the dollar on

Friday, though the dollar index was on pace for its

biggest weekly jump in about a month, driven in large part by

growing expectations for the Federal Reserve to raise interest

rates.

Markets show traders believe central banks are more likely

to raise borrowing costs, with a one-in-three chance of a rate

hike from the Fed as soon as next week - a sea change from

merely a week ago - while a move in September is more than fully

priced in.

The European Central Bank left rates unchanged on Thursday, but

a September rate hike is about 70% priced in. Data on Friday

offered a more optimistic economic outlook, after surveys of

business activity showed Germany's private sector returned to

growth in July for the first time in four months and contraction

in France's private sector eased this month.

Global tech stocks took a hit earlier this week after Alphabet

and Tesla, the first two of the "Magnificent

Seven" megacap tech companies to report this season, spooked

investors as both burned through cash in their most recent

quarter on their big spending on AI infrastructure.

"Valuations in U.S. equities are basically off the roof

despite very little cash flow generated by tech and the highest

beta part of the market. In general, this is a market where

there are (some) bubbly signs," said Gabriele Foà, global credit

portfolio manager at Algebris Investments in Milan.

DOLLAR SET FOR STRONG WEEKLY GAINS ON RATE OUTLOOK

In bond markets, the benchmark 10-year U.S. yield

hit a more than 18-month high of 4.7135%, and last traded at

4.685%. The yield on 30-year bonds was steady at 5.1616%, not

far from a 19-year peak of 5.201%.

"As for the Fed, uncertainty around the outlook for both the

policy rate and the balance sheet could weigh on the UST market

over the next few months," John Davies, U.S. rates strategist at

Standard Chartered Bank wrote in a note on Friday.

"Our base case remains an on-hold Fed, but we see a risk that

the long-end might start to question whether Chair Warsh is only

ready to 'talk the talk' rather than 'walk the walk' on

delivering price stability."

The yen was pinned near 40-year lows at 163.77 per

dollar, drawing warnings from the U.S. Treasury about excess

volatility in the currency and from Japan's finance minister.

Precious metals edged higher in choppy trading, with gold

up 0.1% at $4,051 an ounce after falling 2% the day before,

while silver advanced 0.5% after a decline of 3.4% on

Thursday.

(Reporting by Lawrence Delevingne in Boston, Stella Qiu in

Sydney and Shashwat Chauhan in Bengaluru; Editing by Sonali

Paul, Lincoln Feast, Amanda Cooper, Mrigank Dhaniwala, Anil

D'Silva and Deepa Babington)