US Fed raises key rates for 2nd time this year

The Standard & Poor's 500 index dipped 1 point, or 0.1 percent, to 2,438 as of 1:30 p.m. The Russell 2000 index sank 11 points, or 0.8 percent, to 1,414.

LONDON, June 15 (Reuters) - 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.

The Federal Reserve raised interest rates on Wednesday for the second time in three months, citing continued USA economic growth and job market strength, and announced it would begin cutting its holdings of bonds and other securities this year.

That translates into year-over-year growth of 1.9% for the headline CPI and 1.7% for the core CPI―both below the Fed's 2% inflation target―and the lowest reading for the core in two years.

"Equity markets continue to hit new highs in the US with apparent little fear that the Fed will stifle growth through a series of rapid interest rate increase", Humberto Garcia, head of Global Asset Allocation for Leumi Investment Services, told Xinhua.

In their quarterly projections, Fed officials saw the economy growing slightly faster than previously forecast, with GDP up 2.2 percent this year, a tenth of a percentage point higher than forecast in March.

USA data released yesterday showed inflation contracting by 0.1% in May, while month-on-month retail sales fell by 0.3%. Brookdale, which is not itself a real estate investment trust, jumped $1.13, or 8 per cent, to $15.20.

Retail sales fell 0.3 percent last month - the largest fall since January 2016 and way below economists' expectations for a 0.1 percent gain - amid declining purchases of motor vehicles and discretionary spending. Mueller is examining alleged Russian interference in the 2016 USA presidential election, a claim vehemently denied by Trump. Trump's legal team denounced the report. Scalise is the third highest ranking Republican in the House of Representatives and he remains in critical condition.

The dollar index, which tracks the US currency against a basket of six rivals, was slightly lower on the day at 96.915 though above its overnight low of 96.323 plumbed after downbeat economic figures.

The dollar index was little changed on Thursday after sliding to as low as 96.323 on Wednesday, having shed almost 6 percent on the year, before bouncing back a tad on the Fed's policy tightening.

The euro was down 0.3 percent at $1.1183, a six-day low, while the yen was flat at 109.58 per dollar.

German 10-year yields, the benchmark for borrowing costs in the bloc, rose 5 basis points to 0.28 percent, a one-week high. The Fed shrugged off the inflation data claiming that it was temporary but the market response indicated skepticism of these claims. "But that view will be tested in coming months", he added.

"Market pricing suggests more than 50% probability that the Fed will not raise rates again this year". But traders were divided over the possibility, with some analysts noting the yuan is in better than a few months ago while liquidity in China has already been tightening.

Against this backdrop it is hard to see any other outcome than for the Bank of England to leave interest rates unchanged, particularly at a time when the political backdrop is so uncertain.

Commodity stocks followed crude prices lower to hold the bottom spots on the FTSE 100. Thomson Reuters CRB index tumbled to 14-month lows, having fallen nearly 12 percent from this year's high hit in January.