GLOBAL MARKETS-Stocks struggle as tech slide erases commodities surge

(Recasts, adds details, updates prices)
* World stocks down 0.1% at fresh 2-week low
* Nasdaq futures down 1.5%, S&P 500 futures down 0.5%
* Crude oil, metal prices rise on growth outlook
* Expectations of faster growth spur inflation fears
* Eyes on Fed's Powell testimony at 1500 GMT
* Global asset performance:http://tmsnrt.rs/2yaDPgn

By Danilo Masoni
MILAN, Feb 23 (Reuters) - World shares struggled on Tuesday
as a rally in commodity-related assets gave in to pressure on
heavily weighed tech stocks and investors awaited reassurance
from U.S. Federal Reserve Chair Jerome Powell on the path for
monetary policy in United States.
European tech stocks .SX8P were on set for their worst day
in four months, down 2.7%, and futures on the Nasdaq ESc1 fell
1.5% after losses in stocks like Apple AAPL.O and Tesla
TSLA.O dragged the index down 2.5% on Monday.
"The prospect of a less dovish tone from central banks,
sparked by rising inflation, is causing stock traders to reduce
their exposure to equities, especially overbought sectors like
tech," said Pierre Veyret, analyst at ActivTrades in London.
The MSCI world equity benchmark .MIWD00000PUS fell 0.1% to
fresh two-week lows by 1138 GMT, having earlier risen on gains
in commodity-heavy equity indexes in Asia. S&P 500 futures
ESc1 also fell, and were last down 0.5%.
Tesla TSLA.O shares were set to plunge into the red for
the year, hit by a fall of bitcoin, in which the electric
carmaker recently invested $1.5 billion. ID:nL8N2KT2XN
The level of angst was also reflected in equity volatility
gauges .VIX which rose to multi-week highs, while on bond
markets German and U.S. yields moved in different directions,
even though both remained just below the highs hit on Monday.
After being knocked off from eight-month high by European
Central Bank chief Christine Lagarde signalling discomfort with
the recent surge in yields, 10-year Bund yields DE10YT=RR
resumed their upward trend and were last at -0.297%.
Ten-year Treasury yields US10YT=RR were steady below
Monday's one-year high of 1.394% and were last at 1.370%.
Fed Chair Powell is expected to be equally reassuring on the
central bank's dovish stance when he gives his congressional
testimony at 1500 GMT in Washington.
"If there were already any expectations that Powell could
try to calm down rates, then (Lagarde's remarks) have just
further cemented them," said Giuseppe Sersale, strategist and
fund manager at Anthilia in Milan.
Commodity prices strengthened again.
Oil prices jumped by more than $1 at one point, underpinned
by optimism over COVID-19 vaccine rollouts and lower output as
U.S. supplies were slow to return after a deep freeze in Texas
shut in crude production last week. ID:nL1N2KT03M
Brent crude LCOc1 was last up 0.7% at $65.7 a barrel after
earlier hitting a fresh 13-month high of $66.79, while U.S.
crude CLc1 rose 0.8% to $62.17 a barrel.
"Oil has been caught up in the broader commodities move
higher, with a weaker USD proving constructive for the complex,"
ING strategists led by Warren Patterson said in a note.
"Meanwhile, there is also a growing view that the oil market
is looking increasingly tight over the remainder of the year".
Copper prices meanwhile hit a 9-1/2-year high as tight
supply and solid demand from top consumer China boosted
sentiment. ID:nL1N2KT0BC
In currency markets, the dollar briefly dropped to its
lowest since Jan. 13 ahead of Powell's testimony, while
commodity-linked currencies hovered near multi-year highs.
The dollar index =USD was up 0.1% at 90.137, with the euro
EUR= flat at $1.215.
Bitcoin BTC=BTSP fell as much as 17%, sparking a sell-off
across cryptocurrency markets as investors grew nervous at
sky-high valuations. ID:nL1N2KT09F

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World FX rates YTD http://tmsnrt.rs/2egbfVh
Global asset performance http://tmsnrt.rs/2yaDPgn
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