*

Stocks fall from record highs

*

Markets wait for U.S. CPI data on Tuesday

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Bank of Japan could exit negative rates this month

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Bitcoin hits new all-time high

(Updates prices throughout, adds Wall Street futures in

paragraph 9)

By Elizabeth Howcroft

LONDON, March 11 (Reuters) - European stock indexes fell

from recent record highs on Monday, and Wall Street looked set

for losses, as traders grappled with an uncertain economic

outlook and waited for U.S. inflation data later in the week.

U.S. stocks started to fall from record highs on Friday,

in a move analysts attributed to profit-taking, after U.S.

payrolls data presented a mixed picture but maintained

expectations for a Federal Reserve rate cut in June.

Traders are now focused on U.S. inflation data due on

Tuesday, which could change expectations for when major central

banks will begin cutting rates.

At 1236 GMT, the MSCI World Equity index was down 0.3%,

having hit a new all-time high on Friday.

The pan-European STOXX 600, which also hit an all-time high

on Friday, was down 0.5%. London's FTSE 100 was down

0.5% and Germany's DAX was down 0.7%.

Amelie Derambure, senior multi-asset portfolio manager at

Amundi, said Monday's downturn could be due to uncertainty about

the economic outlook, and high valuations in stocks.

"There are some elements on the macro outlook that are maybe

not as clear as one was willing to believe," she said.

Last week, comments from Fed Chair Jerome Powell and

European Central Bank policymakers raised expectations that

interest rate cuts will begin in summer, helping push stock

indexes to new highs.

But Wall Street futures on Monday pointed to a pullback,

with Nasdaq e-minis down 0.6% and S&P 500 e-minis down

0.5%.

FATIGUE

Derambure said there was "fatigue" in stocks, pointing

to a split in the trajectories of the so-called "Magnificent

Seven" group of U.S. technology stocks, which have rallied

strongly in recent years. A slump in Tesla this year

has seen it diverge from the group.

"To us, there are some excesses in the markets so we

want to be a bit more cautious," she said.

"We believe it's all priced for perfection and the reality

might be slightly different."

Tuesday's U.S. consumer price index (CPI) report for

February is forecast to rise 0.4% for the month and keep the

annual pace steady at 3.1%. Core inflation is seen rising 0.3%,

which will nudge the annual pace down to the lowest since early

2021 at 3.7%.

The U.S. 10-year yield was down by around one basis point at

4.0807%.

Euro zone government bond yields were mostly slightly

higher, with German 10-year yield up by one basis point at

2.281% after last week seeing its biggest weekly

fall since December.

The U.S. dollar index was up 0.1% at 102.76, having

dropped more than 1% last week, and the euro was steady at

$1.09355.

The yen edged higher after Reuters reported that a

growing number of Bank of Japan policymakers are warming to the

idea of ending negative rates this month.

The dollar was down 0.2% against the yen, with the pair at

146.845.

Data released on Monday showed Japan was not in recession

after economic growth was revised up to an annualised 0.4% for

the December quarter.

Chinese stocks gained after data over the weekend showed a

bounce in inflation.

Oil prices were down, having fallen last week due to

concerns about slow demand in China. Brent futures were down

0.3% at $81.83 a barrel, while U.S. West Texas

Intermediate (WTI) was down 0.4% at $77.69 a barrel.

The decline in the dollar and bond yields has been

supportive of non-yielding gold which gained 4.5% last week and

was flat at $2177.9 an ounce.

Cryptocurrency bitcoin hit a new all-time high at $72,259

.