* U.S. retail sales drop in July
* U.S. 10-yr Treasury yields edge up
* China’s Tencent, Alibaba and Meituan fall on latest rules
* Kiwi dollar near three-week low on New Zealand lockdown (Updates pricing after U.S. retail sales)
By Tom Arnold and Julie Zhu
LONDON/HONG KONG, Aug 17 (Reuters) – Global shares stumbled on Tuesday, rattled by concerns over China’s regulations for its once-freewheeling internet sector and a surge in COVID-19 infections worldwide driven by the Delta variant.
U.S. Treasury yields edged up after data showed U.S. retail sales fell more than expected in July, although spending on services could keep the world’s largest economy on a strong growth path in the third quarter.
The pan-European STOXX 600 was 0.1% lower, heading for its second straight session of falls after its longest winning streak in over a decade.
In U.S. stock futures, the S&P 500 e-minis, was down 0.5%.
Chinese regulators issued draft rules on Tuesday…