European shares retreated for a third day as global bonds deepened their slump on concern about higher US interest rates and investors watched for fresh signs of weakness in China. The Stoxx 600 slipped 0.4% at the open, while US equity futures edged higher after Wednesday’s drop on Wall Street. The US 10-year yield rose as much as six basis points to 4.31% on Thursday, taking it to around three basis points away from last October’s peak, which was the highest since 2007.
“But as well as the upcoming decisions, it’s clear that investors are adjusting to the fact that rates could remain at a higher level for some time.” China ramped up its efforts to stem losses in its currency on Thursday by offering the most forceful guidance since October through its daily reference rate for the managed currency. The offshore yuan slipped against the greenback.