Tech stocks hit by weak Tesla earnings
Bond markets remain volatile
U.S. debt ceiling woes clash with hopes of Fed rate hike pause

SINGAPORE, April 20 Reuters World stocks pulled further away from multiweek highs touched earlier this week, with sentiment dampened by disappointing Tesla earnings and worries about the U.S. debt ceiling.

The panEuropean STOXX 600 index, which hit 14month highs on Tuesday, was down a third of a percent in morning trade. U.S. stock futures were broadly weaker , in a bearish sign for the Wall Street open, with contracts that track the techheavy Nasdaq 100 1.1 lower.

All this left the MSCI World index a touch softer on the day and down from Tuesday39;s 212 week peaks.

Electric vehicle maker Tesla missed gross margin forecasts and pledged further price cuts, sending its shares 7 lower premarket and weighing on tech stocks that investors were counting on to prove resilient to a widely predicted U.S. recession.

Apple fell 1 in premarket trade and Google parent Alphabet lost 0.7.

Meanwhile, analysts at JPMorgan said they expected the U.S. debt ceiling to become an issue as early as next month. They also cited a nontrivial risk of a technical default on Treasuries as the government reaches maximum borrowing limits and is therefore unable to issue more bills, bonds or notes.

Treasury Secretary Janet Yellen is expected to soon revise the socalled Xdate the date by which the federal government is deemed unable to meet its obligations in…