Inflation shock drives European stocks to fifth day of losses

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

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 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.

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

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)