* Euro falls on Greek debt restructuring concerns
* Wall Street set for losses
* Japan's Tankan points to supply chain problems
By Jeremy Gaunt, European Investment Correspondent
LONDON, April 14 (Reuters) - European stocks sank,
peripheral debt yields soared and the euro fell on Thursday as
concern that Greece will have to restructure its debt gathered
pace while Chinese inflation returned as an investment concern.
Wall Street looked set to open lower, with the spotlight on
the possible impact of rising raw material costs on corporate
margins.
World stocks <.MIWD00000PUS> were 0.4 percent lower despite
a burst of corporate activity that would usually lift investors'
spirits.
Glencore [], the world's largest commodities trading
company, plans to raise up to $12.1 billion in a London and Hong
Kong stock market flotation that is London's biggest ever.
Shares in Japan's Isuzu Motors <7202.T> jumped on a report that
Volkswagen <VOWG.DE> was considering buying all or part of it.
European shares, as measured by the FTSEurofirst 300
<>, were down three quarters of a percent, only around
half a percent higher than at the end of last year.
Greek bond yields soared, with short-dated paper coming
under the most intense pressure, as markets priced in a greater
probability that Athens would be forced to restructure its
runaway debt.
Yields of other peripheral euro zone states also rose
sharply. []
European stocks were also pressured, however, by concern
that Chinese inflation is returning.
Hong Kong's Phoenix TV, citing an unnamed source, said
China's annual rate of inflation in March was likely to be
5.3-5.4 percent, a 32-month high and just above an estimate in a
Reuters poll. []
Investors are particularly concerned about Chinese inflation
in case government attempts to restrain it prompt a 'hard
landing' for the economy.
"Inflation in emerging economies has become a serious issue,
as the impact from high commodity prices is stronger for those
countries," said Arnaud Scarpaci, fund manager at Paris-based
Agilis Gestion.
Earlier, the Nikkei benchmark <> closed up 0.1 percent,
held back by continued worries about the impact of its
earthquake, tsunami and nuclear disasters.
The Reuters Tankan survey of 400 large firms found on
Thursday that power shortages caused by the crippled Fukushima
nuclear plant had hit nearly 60 percent of local companies,
disrupting production and supply chains. []
EURO HIT
The euro slipped broadly, hitting a session low versus the
dollar on debt restructuring worries.
It <EUR=> fell to the day's trough around $1.4376. Earlier
in the day it had hit a session high around $1.4515 but came
under additional selling pressure after a break under $1.4450
triggered stop-loss orders.
The euro struggled across the board, falling roughly 1.2
percent on the day against the yen <EURJPY=R> to 121.03 yen
according to Reuters data.
Earlier, the dollar hit a 16-month low against a basket of
major currencies <.DXY>, but pared back the losses.
(Additional reporting by Blaise Robinson and William James;
Editing by John Stonestreet)
