Inflation shock drives European stocks to fifth day of losses

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June 13 (Reuters) – European stocks fell for a fifth straight session on Monday, dragged down by economically sensitive stocks, as a sharp rise in U.S. inflation raised concerns about aggressive interest rate hikes by the Federal Reserve.

The pan-European STOXX 600 index .STOXX fell 1.1% by 0712 GMT, hitting a fresh one-month low.

Asian stocks tumbled more than 2%, also hit by a COVID-19 warning from Beijing. Stock markets took cues from a sharp Wall Street sell-off on Friday after data showed the U.S. CPI surged 8.6% in May, its biggest gain since 1981. .N nL1N2XZ00Y

Cyclical sectors such as travel & leisure .SXTP, automakers .SXAP and oil & gas .SXEP led morning losses in Europe on fears about a slowing global economy.

Euro zone banks .SX7E were down 2.8% on disappointment that the European Central Bank did not reveal any tool to support peripheral bonds at its meeting last week. GVD/EUR nF9N2UZ02G

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))