(Refiles to add dropped word "of" in first paragraph)
* Europe shares fade after attempting rebound from Brexit beating
* Nasdaq futures fall as Nvidia shares dive 17 pct on poor results
* Nikkei subdued, Asia shares ex-Japan edge up
* Pound shaky after hammering on UK political chaos
* Oil tries to find footing after recent collapse
* Graphic: A sleuth of bear markets https://tmsnrt.rs/2QCzyvm
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
By Marc Jones
LONDON, Nov 16 (Reuters) - European stocks slipped again and sterling and the euro remained fragile on Friday, as one of the most dramatic twists yet in the Brexit process compounded another turbulent week for world markets.
London, Paris and Frankfurt struggled to maintain a modest early bounce having been clattered the previous day when Britain's Brexit minister quit in protest over a draft deal with the European Union.
Wall Street tech stocks looked set to take a hit, with Nasdaq futures pointing 1 percent lower as disappointing results from U.S. chipmaker Nvidia Corp hit the chip sector globally.
Sterling faired a little better than on Thursday when it slumped more than 2 percent versus the dollar in what turned out to be its worst day against the euro since the post-Brexit vote fallout of 2016.
But with reports of a UK leadership coup still rife and a fear that the country could crash out of the EU without a divorce deal, it couldn't get much beyond 88.40 pence per euro and $1.28 on cable.
"As long as no deal remains as likely as it is, there is a risk of a sterling depreciation spiral that is self-intensifying," said Ulrich Leuchtmannan, an FX strategist at Commerzbank in Frankfurt.
UK and euro zone government bond yields edged up as some stability returned to fixed-income markets.
Still, 10-year yields on German bonds, considered one of the safest assets in the world, were set for their biggest weekly fall in three weeks, in a sign that Brexit uncertainty and worries about Italy's finances continued to support demand.
In Frankfurt, the head of the European Central Bank, Mario Draghi, said the bank still plans to dial back its stimulus at the end of the year, but acknowledged the economy had hit a soft patch and inflation may rise more slowly than expected.
"If firms start to become more uncertain about the growth and inflation outlook, the squeeze on margins could prove more persistent," Draghi told a conference.
Some of Europe's biggest funds who took part in a Reuters summit this week said they now think Draghi will be the first president in the ECB's history not to have raised interest rates during their term.
CHIPS ARE DOWN
Asian shares had ended their session firmer after reports the United States might pause on further China tariffs, but a near 17 percent plunge in Nvidia's stock in after hours Wall Street dealing had tempered the mood.
The chip designer forecast disappointing sales for the holiday quarter, pinning the blame on unsold chips piling up with distributors and retailers after the cryptocurrency mining boom evaporated.
Also falling after hours were shares of Advanced Micro Devices and Intel. Losses in semiconductor shares dragged Japan's Nikkei down 0.5 percent, while Nasdaq futures were last down 1.3 percent.
"It started with Apple, then Nvidia ... Since performances of these companies set the tone for the global tech and chip industries, related Japanese stocks will likely be sluggish for a while," said Takatoshi Itoshima, a strategist at Pictet Asset Management.
Europe's tech stocks also suffered but Brexit remained the region's main focus. Fears that UK Prime Minister Theresa May's hard-fought deal could collapse had sent British markets into gyrations not seen since the June 2016 referendum on EU membership.
Britain's leading FTSE 100 was at a session low, down 0.5 percent by 1225 GMT, with FTSE 350 bank stocks down 1.4 percent as lender RBS slid a further 4 percent.
"If and when a vote on the withdrawal agreement occurs is uncertain. Whether the withdrawal bill is passed by both houses of Parliament is uncertain," Joseph Capurso, a senior currency strategist at CBA, said in a note.
"Whether the Prime Minister resigns or is challenged for the leadership is uncertain. And, whether there is a second referendum and/or an election is uncertain."
The sterling swoon kept the dollar basket at 96.97 and heading for its fifth weekly gain, even as the euro strengthened a touch on the day to $1.1333.
Cryptocurrency Bitcoin hit a one-year trough overnight, having tumbled 10 percent early in the week when support at $6,000 gave way. It was last changing hands at $5,530 on the Bitstamp platform.
In commodity markets, gold was up at $1,215.
Oil prices rose too, helped by a decline in U.S. fuel stockpiles and the possibility of a cut in OPEC output.
U.S. crude was trading up 80 cents at $57.27 and Brent crude rose roughly 1 dollar to $67.65 a barrel. It was still set for a sixth straight weekly loss, however. (Additional reporting by Tom Finn in London and Wayne Cole in Sydney; editing by Larry King and Raissa Kasolowsky)
Our Standards: The Thomson Reuters Trust Principles.