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* Tech shares at lowest since late March
* Travel stocks caught in European sell-off
* Investors brace for strong U.S. inflation data (Adds comment, updates prices)
May 11 (Reuters) – European stocks retreated from all-time highs on Tuesday, with travel, retail and technology shares among the top losers after worries about rising U.S. inflation knocked back U.S. indexes.
The pan-European STOXX 600 index fell 1.9% and was on course for its biggest percentage decline in three weeks. The main bourses in Frankfurt, Paris and London all lost close to 2%.
Global sentiment soured after investors dumped Wall Street’s market-leading growth stocks on Monday ahead of the latest reading on U.S. consumer prices, which many fear could prompt the Federal Reserve to rethink its monetary policy stance.
“Most will wait for the inflation print to decide whether they need to reduce risk further or see it as an opportunity,” Sebastien Galy, senior macro strategist at Nordea Asset Management, wrote in a morning note.
“That suggests that losses today in the European and U.S. equity market should stay below the 2% range.”
U.S. tech stocks looked set for another round of sell-off, with Nasdaq futures down 1.3% as investors worried an increase in U.S. interest rates could weigh on their valuations.
European tech shares fell 2.3% to their lowest in six weeks, while miners handed back some of their strong gains notched in the previous session.
Travel and leisure stocks slumped 4.1% as Sweden’s Evolution Gaming Group tumbled 9.1% after the bookrunner announced the pricing of block trades.
Meanwhile, British Airways-owner IAG dropped 5.9% after announcing a convertible bond offering plan worth 800 million euros.
German conglomerate Thyssenkrupp fell 5.9% despite raising its full-year adjusted earnings outlook. The company, however, said no major decisions were to be expected from a supervisory board meeting scheduled for May 19.
German minerals group K+S also slipped 2.6% despite raising its 2021 core profit forecast.
The pullback in European stocks comes after a strong rally, with the STOXX 600 up about 10% so far this year as a solid earnings season and economy re-opening optimism saw more buying in the economically sensitive parts of the market.
Among the few gainers was UK’s lifestyle e-commerce company THG HG Plc, which soared 12.6% on raising more than $1 billion in equity, including $730 million from Japan’s SoftBank Group. (Reporting by Sruthi Shankar in Bengaluru; Editing by Saumyadeb Chakrabarty and Subhranshu Sahu)
