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European stocks looked set to break a recent rally on Wednesday as a fall in oil and metal prices knocked commodity-related stocks lower, while surging UK inflation revived fears about slowing global growth.

By 0718 GMT, the pan-European STOXX 600 had fallen 1.5% to hit a fresh low since February 2021, resuming a selloff that hammered global stocks last week.

Oil & gas stocks tumbled 2.9%, mirroring a more than $6-a-barrel slump in crude prices, amid a push by US President Joe Biden to bring down soaring fuel costs.

Miners fell 2.7% and automakers dropped 2.9%, while defensive telecoms and healthcare stocks fell the least.

UK’s FTSE 100 fell 1.3% as data showed soaring food prices pushed British consumer price inflation to a new 40-year high last month of 9.1%, underlining the severity of the cost-of-living crunch.

BASF slid 4.2% after the German chemical group’s CEO said the company is likely to face a considerable downturn early in the second half of the year.

European shares extend gains but recession risks hover

Norway’s Mowi, the world’s largest fish farmer, tumbled 6.1% after share placing.

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