Aug 17 (Reuters) – European stocks sank to their lowest in a week on Tuesday as a spike in COVID-19 cases in Asia and elsewhere raised fears of a slowdown in global economic growth. The pan-European STOXX 600 shed 0.5% by 0710 GMT, falling for a second straight session after the index marked its longest winning streak in over a decade. Tighter scrutiny of China’s internet sector, nationwide lockdown in New Zealand and movement restrictions in several Asian countries kept investors on edge even as European economies continued to recover from the pandemic-driven downturn. Economically sensitive cyclical sectors such as oil and gas , travel and leisure, automakers and banks led the early declines. UK-listed shares of miner BHP Group jumped 8.6% after it posted its best annual profit in nearly a decade and said it would sell its petroleum assets to Woodside Petroleum. Nick Note: The markets really want to rally. Led by the stupid money who know no fear. That is the normal state of affairs until they suffer their first wipe out. This rally has gone far beyond any reason. Its is very very very unusual for me to stand aside a market i want to short this long. But this is a very unusual market. I am waiting to see which pin bursts this balloon. Besides the coming covid19 lockdowns we also have another elephant in the room. The ticking inflation time bomb that will force the feds hand. I am sensing that the Fed is starting to hear ticking. Soon they will open the box and see the time bomb.