* European stocks fall, hit by miners, energy shares
* Europe follows Asia lower on economic growth worries
* Dollar up after Fed but weak data overshadows rate hike
* Three BoE policymakers vote for rate hike
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Nigel Stephenson
LONDON, June 15 Stocks fell in Europe and Asia
on Thursday as investor concern over the pace of economic growth
hit shares in mining and retail sectors while the prospect of
tighter monetary policy in the United States and Britain pushed
up the dollar and bond yields.
U.S. stock futures signalled a rocky
start on Wall Street after the Federal Reserve raised interest
rates, as widely expected, and signalled another hike could
follow this year.
In emerging markets, Russian shares fell 4 percent
as risks grew of expanded sanctions and the price of oil fell.
European shares, already led down by mining stocks as the
stronger dollar pushed metals prices lower, extended losses
after data showed British consumers, who have been the drivers
of the UK economy are feeling the impact of rising inflation.
"I don't think this is a surprise to anyone in terms of the
narrative about how weak and stretched the consumer is and will
be for the next quarters," JPMorgan Asset Management global
market strategist David Stubbs said.
"If retail sales are weak then the pie is contracting and
someone is going to get hammered. Those that are unable to deal
with that are going to see a much weaker bottom line."
U.S. numbers on Wednesday showed a similar picture on the
other side of the Atlantic - retail sales fell more than
expected in May.
In a sign that the squeeze on consumers may get tighter
before long, three Bank of England policymakers voted to raise
rates against five for keeping rates on hold. Economists polled
by Reuters had expected a 7-1 vote in favour of no change.
The pan-European STOXX 600 index dropped 0.7
percent, led lower by the retail sector, down 1.8
percent and heading for its worst day in eight months, and the
basic resources sector, which fell 1.4 percent.
Britain's DFS Furniture fell 21 percent after the
company said a dip in demand and customer uncertainty about the
economic outlook meant it would not meet profit expectations.
The prime cause of rising UK inflation has been weakness in
the pound, which has fallen 15 percent against the dollar since
topping $1.50 in the early hours of last June 24, when it
initially appeared Britons had voted to remain in the EU.
Sterling edged up after the BoE decision but reversed
course after finance minister Philip Hammond pulled out of a
high-profile speaking engagement because of a deadly fire at a
London tower block.
He had been expected to speak about the need for a Brexit
deal with the EU that suited the needs of British business.
The dollar was up 0.4 percent against a basket of major
"Long-term Fed expectations remain very much supported. That
is the main reason why the dollar is remaining supported for
now," Credit Agricole currency strategist Manuel Oliveri said.
The euro was down 0.5 percent at $1.1164, its weakest for
more than two weeks, while the yen was down a similar
amount at 110.07 per dollar.
The Fed raised interest rates for the second time this year,
by a quarter percentage point to a target range of 1.00-1.25
percent. It also gave a first clear outline of plans to shed its
$4.5 trillion bond portfolio built up in three rounds of
quantitative easing stimulus.
A Washington Post report that U.S. President Donald Trump
was under investigation for possible obstruction of justice
added to investor worries and undermined risk appetite.
The stronger dollar pushed copper down 0.6 percent
to $5,663 a tonne, having hit a one-week low of $5,642.
The prospect of tighter monetary policy and the fact the Fed
talked about shrinking its balance sheet pushed euro zone
government bond yields higher.
German 10-year yields, the benchmark for
borrowing costs in the bloc, rose 5 basis points to 0.28
percent, a one-week high.
Later in the day, the bond market focus is likely to shift
to Greece as euro zone finance ministers meet to discuss a deal
with the International Monetary Fund that could pave the way for
new loans for Athens.
Oil prices, which are having a negative impact on inflation
worldwide, hit six-week lows with global inventories high and
doubts over whether the OPEC producers group would be able to
implement agreed output cuts.
Brent crude, the international benchmark, was down 17 cents
a barrel at $46.83.
The firmer dollar pushed gold down 0.4 percent to
$1,256 an ounce.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Hideyuki Sano in TOKYO, Ritvik
Carvalho and Abhinav Ramanarayan, and Jan Harvey in LONDON;
Editing by Louise Ireland)