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

(Updates to close of U.S (Other OTC: UBGXF - news) . markets)

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

* U.S. 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.

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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 trading mostly flat, with financials weighing 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 S&P 500 hit record closing highs for four straight days earlier this week, while the Dow hit record closing peaks for three straight days.

The Commerce Department said U.S. retail sales increased 0.6 percent last month. Second-quarter results from Citigroup (Swiss: C.SW - news) and Wells Fargo (Hanover: NWT.HA - news) , however, failed to match up to the expectation set by JPMorgan'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.

"It (Other OTC: ITGL - news) was a bit of a reversion to the mean," said Chuck Self, chief investment officer of iSectors in Appleton, Wisconsin, on the rally in U.S. shares losing its steam. "Given the geopolitical situation, if you could take profits here, there are many traders who just decided to do that."

MSCI's all-country world stock index was last down 0.48 points, or 0.12 percent, at 411.22.

The Dow Jones industrial average ended up 10.14 points, or 0.05 percent, at 18,516.55. The S&P 500 closed down 2.01 points, or 0.09 percent, at 2,161.74. The Nasdaq Composite closed down 4.47 points, or 0.09 percent, at 5,029.59.

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

Benchmark 10-year Treasury yields hit a three-week high of 1.601 percent after the U.S. data added to expectations the Fed may raise rates again this year.

"Given the data we've gotten, yields are probably still too low," said Dan Mulholland, head of Treasury trading at Credit Agricole in New York.

Oil prices rose slightly, ending the week higher, after the data from the United States and China boosted the oil demand outlook.

Brent crude futures closed up 24 cents, or 0.5 percent, at $47.61. U.S. West Texas Intermediate futures settled up 27 cents, or 0.6 percent, at $45.95.

The safe-haven Japanese yen and gold fell. The dollar rose to a three-week high of 106.30 yen and posted its largest weekly gain against the yen in 17 years.

Gold was set for its first weekly loss since May. U.S. gold settled down 0.4 percent at $1,327.40 per ounce.

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