GLOBAL MARKETS-European shares slip after Nice attack, U.S. yields surge

(Corrects 14th paragraph to say oil prices on track for weekly gain, not second consecutive weekly gain)

* European shares lower after deadly Nice (Milan: NICE.MI - news) attack

* U.S (Other OTC: UBGXF - news) . 10-year Treasury yields hit three-week highs

* S&P 500 hits intraday record high of 2,169.05

* Dow hits intraday record high of 18,557.43

* Dollar hits three-week high against yen

* Gold (Other OTC: GDCWF - news) set for first weekly fall in seven

By Sam Forgione

NEW YORK, July 15 (Reuters) - European shares edged lower on Friday after at least 84 people died in an attack in France and U.S. Treasury yields jumped as strong economic data renewed prospects of a Federal Reserve interest rate hike, while U.S. stocks eased from record highs.

Shares (Berlin: DI6.BE - news) 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 closed down 1.2 percent.

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 slipping, with financials weighing on broader U.S. stocks after disappointing results from big banks.

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 U.S. retail sales increased 0.6 percent last month, marking the third straight month of gains. Second-quarter results from Citigroup (NYSE: C - news) and Wells Fargo (Hanover: NWT.HA - news) , however, failed to match up to the expectation set by JPMorgan (LSE: JPIU.L - news) 's strong numbers on Thursday.

Data showing China's economy grew a slightly stronger-than-expected 6.7 percent in the second quarter bolstered MSCI (NYSE: MSCI - news) 's all-country world equity index to an eight-month high of 412.63.

"Investors are primarily reacting to the bank earnings," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York, on the dip in U.S. shares. "What we've seen since the open really has been simply some profit-taking going into the weekend after an extraordinary run-up."

MSCI's all-country world equity index was last down 1.07 points, or 0.26 percent, at 410.63.

The Dow Jones industrial average was last down 26.74 points, or 0.14 percent, at 18,479.67. The S&P 500 was down 7.04 points, or 0.33 percent, at 2,156.71. The Nasdaq Composite was off 13.82 points, or 0.27 percent, at 5,020.24.

Europe's broad FTSEurofirst 300 index closed down 0.15 percent at 1,335.71.

Yields on safe-haven U.S. Treasuries maturing between two and 10 years hit three-week highs, with benchmark 10-year yields reaching 1.599 percent, while 30-year yields hit more than two-week highs after the U.S. data added to expectations the Fed may raise rates again this year.

"Over the last week or so we've gotten stronger-than-expected data across the board," said Dan Mulholland, head of Treasury trading at Credit Agricole (Swiss: ACA.SW - news) in New (KOSDAQ: 160550.KQ - news) York. "It's weighing on the market now that the flight-to-quality trade fades."

Oil prices were steady, on track for a weekly gain, after the data from top energy consumers the United States and China boosted the oil demand outlook.

The safe-haven Japanese yen and gold 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 0.31 percent at $1,330.56

(Additional reporting by Marc Jones in London and Karen Brettell in New York; Editing by James Dalgleish)