STOXX 600 briefly hits lowest since March 8
Siemens drops as it takes hefty charge
Russian gas flows to Europe via Ukraine fall

May 12 Reuters European stocks slumped on Thursday, echoing sharp losses on Wall Street overnight, after U.S. inflation data fuelled worries about the impact of rising interest rates on economic growth.

The continentwide STOXX 600 index slid 1.7, reversing much of the midweek gains. Technology, automakers and mining stocks were the top losers among sectors.

U.S. techheavy index Nasdaq tumbled over 3 on Wednesday as investors bet on bigger rate hikes by the Federal Reserve after consumer prices moderated in April but increased more than economists39; expectations. 

We expect inflation data to remain a central concern for both policymakers and investors over the coming months, Mark Haefele, chief investment officer at UBS Global Wealth Management said in a note.

Rapid wage growth and strong demand could result in sustained price increases for services, forcing the Fed to continue raising rates even if goods prices stabilize.

Worries about monetary policy tightening, economic slowdown in China and surging inflation have stoked worries about recession, pushing the STOXX 600 to shed 6.7 so far in May even thought firstquarter earnings have been largely supportive.

Adding to worries, Russian gas flows to Europe via Ukraine fell by a quarter after Kyiv halted use of a major transit route, the first time exports via Ukraine have been…