Europe shares sink on mounting worries over global growth

* FTSEurofirst 300 down 1.6 pct, mining sector down 5.2 pct

* Grim U.S. retail sales, World Bank outlook hit sentiment

* Trading volumes on FTSE 35 pct above recent average

By Blaise Robinson

PARIS, Jan 14 (Reuters) - European shares sank on Wednesday in big volumes, knocked down by worries over the pace of global growth that were fuelled by grim U.S. retail sales data and cuts to the World Bank's economic forecasts.

Shares (Dusseldorf: DI6.DU - news) in mining giants tumbled along with copper prices, down 6 percent as investors slashed their exposure to the industrial metal.

Glencore (Xetra: A1JAGV - news) ended 9.3 percent down after hitting a record low and Anglo American (LSE: AAL.L - news) fell 9 percent. Copper mining generated nearly two-fifths of Glencore's operating profit in the first half of 2014 and about a quarter of Anglo's.

Major oil producers also retreated on Wednesday, tracking a renewed drop in crude prices. Royal Dutch Shell (Xetra: R6C1.DE - news) shed 3.3 percent, BP fell 3.6 percent and Eni (NYSE: E - news) ended down 3 percent.

Although lower commodity prices should help support the economy in the long term and reduce input costs for companies in many sectors, investors fear the benefits of cheaper oil and metals will be offset by anaemic growth and potential deflation.

"Inflation has basically disappeared in Europe, this is it. Prices are down in a lot of countries and salaries are going nowhere. There's a risk to see the drop in oil pushing the euro zone into deflation," said Daniel Larrouturou, deputy CEO of Paris-based Diamant Bleu Gestion.

"But we're not there yet, and a potential round of quantitative easing by the European Central Bank could help avoid that."

Shares briefly trimmed losses around midday after an adviser to Europe's top court said an ECB bond-buying programme was legal under some conditions, potentially smoothing the way for a widely anticipated QE package for the euro zone.

But stocks resumed their slide in afternoon trading, with the FTSEurofirst 300 index of top European shares ending 1.6 percent lower at 1,354.39 points. London's FTSE 100 , home to a number of major commodity players, dropped 2.4 percent.

Trading was brisk, with volumes on the FTSE 100 about 35 percent above the benchmark's average daily volumes of the past 90 days.

The World Bank lowered its global growth forecast for both 2015 and 2016 on Tuesday, citing disappointing economic prospects in the euro zone, Japan and some major emerging economies that would offset the benefit of lower oil prices.

Adding to worries, data showed U.S. retail sales recorded their largest decline in 11 months in December as demand fell almost across the board, denting expectations for a sharp acceleration in consumer spending in the fourth quarter.

"These growth fears are keeping markets busy and it is linked with the deflation question," said Christian Gattiker, chief strategist and head of research at Bank Julius Baer.

"We have the stress in financial markets because it's about the solvency and liquidity of oil producers."

The slump in crude oil prices started in mid-2014 has been pummelling the bonds of energy companies and sending shockwaves through the high-yield credit market.

Europe bourses in 2014: http://link.reuters.com/pap87v

Asset performance in 2014: http://link.reuters.com/gap87v

Today's European research round-up

(Additional reporting by Silvia Antonioli, Alistair Smout and Francesco Canepa in London; Editing by Catherine Evans)