European shares fall on lower commodity prices and fears of inflation

European stocks look set to break a rally on Wednesday, with the decline in oil and metal prices lowering shares of commodity-related companies, while British inflation data revived fears of slowing global growth.

By 0718 GMT, the pan-European STOXX 600 index fell 1.5 percent, to a record low not seen since February 2021, and the selling that damaged global stocks resumed last week.

Oil and gas stocks plunged 2.9 percent, affected by a drop in the price of oil by more than six dollars a barrel, amid efforts by US President Joe Biden to reduce fuel prices.

The mining sector declined by 2.7 percent, the automobile sector by 2.9 percent, and the health care sector decreased by a smaller percentage.

Shares in German chemical BASF fell 4.2 percent after its chief executive said it would face a major downturn in the early second half of the year.

Norway’s Moi Fishing Inc plunged 6.1 percent.