* European shares steady after China enters bear territory
* Tech shares retreat broadly on latest US-China row
* Dollar finds some traction as US yields start to rise
* Metals knocked back in latest trade storms
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, June 26 (Reuters) - Gains on Wall Street and Europe's main stock exchanges relieved nervy investors on Tuesday, after the latest escalation in a global trade storm pummeled Wall Street and sent China into bear market territory.
A 0.6 percent rise by the FTSE in London .FTSE and 0.2 to 0.4 percent gains in Frankfurt .GDAXI , Paris .FCHI and U.S. markets were a welcome sight, after Asia had extended a sell-off that has now wiped $1.5 trillion off world stocks .T .SS .
China's yuan had slumped to a near six-month low against the dollar, and 0.5 to 0.8 percent declines on its big share markets .CSI300 .SSEC .SS left them down 20 percent from their January peaks, a threshold that defines a bear market.
As markets steadied, the dollar rose nearly half a percent against a basket of six other top world currencies .DXY as U.S. and other benchmark bond yields began to climb again, too. FRX/ GVD/EUR
"The sell-off in risk assets has eased, but it is certainly not the last storm we are likely to see coming from that direction," said Kit Juckes, Societe Generale's global macro strategist.
The tense atmosphere also kept metals on the defensive as amid worries about the global economic fallout of the U.S. administration's "America First" agenda.
U.S. Treasury Secretary Steven Mnuchin ramped up the rhetoric on Monday, tweeting that restrictions on investing in U.S. tech firms would apply "to all countries that are trying to steal our technology" Street was looking to recover from the previous session's trauma. The S&P 500 .SPX and Nasdaq .IXIC both suffered their steepest losses in more than two months, while the Dow Jones closed below its 200-day moving average for the first time since June 2016 .N .
The so-called FAANG stocks, which have led momentum in U.S. stocks, were hammered after reaching record intraday highs last week. Facebook FB.O dropped 2.7 percent, Amazon (NASDAQ:AMZN)