Stocks worldwide slipped yesterday after disappointing corporate results from companies such as Boeing and Volvo and after a recent rally fuelled by expectations for a Greek debt deal faded, while the US dollar gained on strong US inflation and housing data.

Volvo shares ended 6.3 per cent lower in Europe at $102.10, while a drop in Boeing shares and a 1.5 per cent tumble in the S&P 500 energy index to its lowest level since January 2013 weighed on US shares. Energy stocks slid on a drop in oil prices.

Hopes for a Greek debt deal and more European Central Bank help for Greek banks, which boosted shares on Thursday, had little positive impact.

The Nasdaq composite index, however, still hit a record high on Wall Street after strong results from Google.

Forecast-beating corporate reports from mobile network supplier Ericsson, appliance maker Electrolux and Swiss fragrance firm Givaudan limited losses on European shares.

The earnings announcements are mixed and there is a little bit of an anticlimax after the Greece headlines, said Markus Huber, trader at brokerage Peregrine & Black.

Strong consumer price index data, rebounding housing starts and surging building permits bolstered expectations that the Federal Reserve was moving closer to hiking rates, which buoyed the dollar.

The US dollar index, which measures the greenback against a basket of six major currencies, was last up 0.22 per cent yesterday and on track for its strongest weekly gain since May, up more than 1.5 per cent so far this week.

MSCI’s all-country world equity index, was last down 0.21 per cent at 431.26.

The S&P 500 was last down 0.09 per cent, at 2122.38 and the Dow Jones industrial average was down 0.38 per cent, at 18051.50. The Nasdaq composite was up 0.58 per cent, at 5193.141. The index touched a record intraday high of 5,198.73.

The FTSEurofirst 300 index of top European shares closed down 0.01 per cent at 1608.59. The FTSEurofirst and Euro STOXX 50 indexes both remain up nearly 20 per cent in 2015.

The US Treasury yield curve flattened after the solid inflation and housing data strengthened the view that the Fed was inching closer to hiking rates. Yields move inversely to prices.

Spot gold prices fell more than 1 per cent to their lowest level since April 2010 of $1,130.80 an ounce, pressured by the strong dollar and increasing bets that the Fed will hike rates.

Oil prices slipped in choppy trading, heading for a third week of losses and feeling pressure from the stronger dollar and expectations of increased exports from Iran. International benchmark Brent was last down 8 cents at $56.84 a barrel, while front-month US crude futures were last down 36 cents at $50.55.

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