European markets pulled back on Tuesday following a sell-off in U.S. tech stocks at the start of the week and as global markets turn their focus on inflation data.
The pan-European Stoxx 600 fell 1.4% in early trade with travel and leisure stocks plunging 4% to lead losses, as all sectors and major bourses slid into negative territory.
The tumble comes after negative trading sentiment in Asia-Pacific markets overnight following a sell-off in tech stocks on Monday that weighed down major U.S. indexes.
Investors around the world are also focused on the latest inflation data this week; China released data Tuesday that showed consumer prices data in April jumped 0.9% from a year ago, slightly missing the 1% forecast by analysts in a Reuters poll. However, the producer price index rose 6.8%, beating the 6.5% projected by analysts polled by Reuters.
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U.S. inflation data is released Wednesday amid growing concerns that the Federal Reserve will be prompted to tighten its monetary policy stance as prices rise along with the reopening of the global economy.
In the U.K., the queen’s speech takes place on Tuesday, in which the British government sets out which laws it intends to pass in the months ahead.
Earnings came from Ubisoft, Bilfinger and Thyssenkrupp before the bell, and Hugo Boss holds an AGM Tuesday. Data releases include Germany’s ZEW survey of economic sentiment for May, and OPEC publishes its latest monthly oil market report.
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— CNBC’s Thomas Franck contributed reporting to this story.
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