UPDATE 2-European equities sapped by Brexit fears, energy and tech stocks slide

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* UK ramps up no-deal preparations as EU trade talks stall
* German exports rise in July but remain below pre-crisis
levels
* Oil & gas sector index logs worst session in 11 weeks
* French electricity giant EDF sinks as output falls

(Updates prices throughout, adds comments)
By Shreyashi Sanyal
Sept 8 (Reuters) - European shares fell on Tuesday on fears
that Britain was in danger of leaving the European Union without
a trade agreement, with energy firms and technology stocks among
the biggest decliners.
The oil & gas sub-index .SXEP tumbled 3.7% marking its
worst day in nearly 11 weeks, as oil prices plunged over 8% on
demand worries. O/R
As tech firms on Wall Street deepened a selloff from last
week, European tech stocks .SX8P slipped 2.1%, giving back a
chunk of the previous session's gain. .N
"Stocks in Europe had free rein yesterday as the U.S.
exchanges remained closed because it was Labour Day. The
weakness that we saw in big U.S. tech names last week, is still
in play, and that is driving sentiment over here," said David
Madden, market analyst at CMC Markets UK.
News that Softbank 9984.T made big option purchases during
the run-up in the U.S. stock market also made investors question
a rally in equity markets, with the trades being revealed just
as a tech-led rally faltered. The pan-European STOXX 600 slid 1.2%, with declines in
French energy group Total TOTF.PA and German enterprise
software maker SAP SE SAPG.DE dragging down the index.
Britain began a new round of Brexit trade talks this week by
telling the European Union that it was ramping up preparations
to leave the bloc without an agreement as the two sides bicker
over rules that govern nearly $1 trillion in trade. Analysts at Commerzbank urged caution against completely
excluding a scenario where negotiations fail.
"This is the result of the typical prisoner's dilemma: for
fear of getting short shrift, an agreement is then reached that
is disadvantageous for both sides but the 'devil may care'
approach demonstrated by the British government does not exactly
help to instil confidence."
The STOXX 600 has traded in a limited range since June, but
markets are bracing for the European Central Bank's (ECB) policy
meeting on Thursday, which could act as the next catalyst.
French electricity giant EDF EDF.PA sank 8% after
announcing its nuclear output fell 17.6% in August due to the
effects of the pandemic and reactor outages.
Britain's Royal Mail RMG.L surged 25% after raising its
revenue target for the current year. Data showed German exports rose in July, however, remained
far below pre-crisis levels. Separately, figures showed the euro
zone economy declined slightly less than estimated in the second
quarter but was still the sharpest ever fall.