(Updates to U.S. market close)

* US, European stocks regain limited ground

* 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; dollar steady

By Lawrence Delevingne, Shashwat Chauhan and Stella Qiu

July 24 (Reuters) - U.S. and European stock markets found

only scattered relief from this week's lows as oil prices pulled

back on Friday, but global bond yields stayed near multi-decade

highs as concerns over inflation and rate hikes continued.

News that U.S. President Donald Trump's administration will

impose higher tariffs on goods from 60 trading partners did not

help the inflation picture, with 30-year Treasury yields

near 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 mixed, with the Dow Jones Industrial

Average up 0.46%, the S&P 500 little changed and

the Nasdaq Composite down 0.64%.

Shares of chipmaker Intel ( INTC ) fell about 8% despite strong

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 gained 0.8% after a more

than 1% drop in the last session, rising for a second straight

week.

Brent crude settled at $96.78 a barrel, down $3.91, or

3.88%, having closed above $100 in the previous session for the

first time since May.

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. Trump threatened "major military punishment" for Iran

and its Houthi allies, while the U.S. military conducted a 13th

consecutive night of attacks.

BOND YIELDS NEAR HIGHS

Benchmark 10-year U.S. Treasury yields dipped from 18-month

highs on Friday as oil prices eased, though investors remained

cautious ahead of the Federal Reserve's policy meeting next

week, which many believe could bring a hawkish surprise.

The benchmark 10-year U.S. Treasury yield ticked

down to 4.679%, while the yield on 30-year Treasury bonds was

steady at 5.163%, not far from a 19-year peak of 5.201%.

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.

"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, referring to

the Treasuries market.

"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," Davies said.

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.

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.

The yen was pinned near 40-year lows at 163.84 per

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

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