European shares slipped yesterday after at least 84 people died in an attack in France and US Treasury yields jumpedas strong economic data renewed prospects of a Federal Reserve interest rate hike this year, while US stocks traded nearly unchanged.

Shares of European travel and leisure companies fell, weighing on the region’s stock markets, after the attack in the city of Nice, which also injured scores of people.

The STOXX Europe 600 Travel & Leisure index fell 1.2 per cent.

The benchmark S&P 500 and Dow Jones industrial average stock indexes edged up to fresh record intraday highs on stronger-than-expected June retail sales data before turning flat.

The S&P hit 2,169.05, topping Thursday’s record intraday peak and marking its fifth straight record intraday high, and the Dow hit 18,557.43, its fourth consecutive record peak.

The Commerce Department said US retail sales increased 0.6 per cent last month, marking the third straight month of gains. The data offset disappointing second-quarter results from big banks and helped boost US shares.

Data showing China’s economy grew a slightly stronger-than-expected 6.7 per cent in the second quarter as the government stepped up spending bolstered MSCI’s all-country world equity index to an eight-month high of 412.63. Yields on safe-haven US Treasuries maturing between two and 10 years hit three-week highs, with benchmark 10-year yields reaching 1.596 per cent, while 30-year yields hit more than two-week highs after the US data added to expectations the Fed may raise rates again this year.

MSCI’s all-country world equity index was last down 0.51 point, or 0.12 per cent, at 411.19.

The Dow Jones industrial average was last up 7.23 points, or 0.04 per cent, at 18,513.64. The S&P 500 was last down 1.17 points, or 0.05 per cent, at 2,162.58. The Nasdaq Composite was off 3.63 points, or 0.07 per cent, at 5,030.43.

Europe’s broad FTSEurofirst 300 index was last down 0.30 per cent at 1,333.67.

Crude oil prices were mostly flat after the economic data from top energy consumers the United States and China had given them a short-lived boost, although gains were capped by concerns over a persistent supply glut.

The safe-haven Japanese yen and gold also fell. The dollar rose to a three-week high of 106.30 yen and was set for its biggest weekly gain against the Japanese currency in 17 years.

Gold was set for its first weekly loss since May. Spot gold was last down 0.55 per cent at $1,327.31 an ounce.

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