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LIVE MARKETS-94% of STOXX 600 in the red

05/11/2021 03:40
LIVE MARKETS-94% of STOXX 600 in the red

European shares down sharply

STOXX 600 falls 1.7%

Inflation worries grip investors

Nasdaq leads U.S. futures lower

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94% OF STOXX 600 IN THE RED (0736 GMT)

European shares are off to a risk-off start this morning with selling orders making little distinction and sending all sectors from tech to miners down sharply in early deals, as investors take profit from a record-breaking run.

The STOXX 600 .STOXX benchmark was last down 1.7% with 563, or 94% of its total constituents trading in the red -- a clear sign of the sell-everything mood that is gripping investors as questions remain over the outlook for inflation and monetary policy.

Here's your opening snapshot:


(Danilo Masoni)

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FALLING FROM PEAKS (0654 GMT)

The euphoria that followed the shock U.S. payrolls data last week has fizzled out, leaving inflation worries take centre stage again and sucking some air out of the powerful rotation into assets geared to the economic recovery.

Falls in European stock futures have reached 1.5%, a day after the region's top benchmark hit a fresh record high. The Dow Jones also snapped back from all-time highs overnight and in the commodities space, Shanghai copper is off historic peaks, along with iron ore futures after a red-hot rally.

Asian stocks are on course for their worst day in two months and Wall Street too is set for more declines later on, mainly dragged down by Big Tech.

So while investors await tomorrow's U.S. CPI, which is expected to show a 3.6% rise year-on-year, data earlier today from China added to inflation concerns, as factory gate prices rose at the fastest rate in three and a half years in April.

In corporate news, the steep falls in Meituan gave another illustration of the tech sector's troubles. Shares in China's food delivery giant fell almost 10% at one point after its CEO posted and then deleted a post that some viewed as criticism of Beijing's ongoing regulatory crackdown.

In Europe, solid earnings updates continued. Thyssenkrupp raised its outlook for the second time in three months, sending its shares up 1% premarket. K+S raised its core profit forecast, saying a rise in potash prices should have an increasingly positive impact in the coming quarters.

(Danilo Masoni)

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EUROPE HEADS SOUTH (0533 GMT)

European shares look set to open down sharply this morning with futures falling as much as 1.5%, one day after the STOXX 600 regional benchmark index climbed to a new record high.

Investors are clearly in a risk off mood. Wall Street suffered heavy losses overnight and looks set for more losses later in the day, while in Asia red signs prevailed too.

Asian tech stocks tumbled and a regional equity gauge suffered its biggest slide in nearly two months, as traders braced for U.S. inflation data amid worries growing price pressures might bring forward rate rises. nL1N2MY04W

(Danilo Masoni)

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