European markets slide after U.S. inflation data

LONDON (Reuters) - European shares and the euro slid on Tuesday, and European bond yields jumped, after data showed monthly U.S consumer prices unexpectedly rose in August.

The consumer price index gained 0.1% last month after being unchanged in July, the Labor Department said on Tuesday. Economists polled by Reuters had forecast the CPI dipping 0.1%.

European stocks turned sharply lower, pushing the pan-regional STOXX 600 equity benchmark into negative territory. The index was down 0.3% by 1246 GMT, having risen as much as 0.6% before the data.

The dollar index, which tracks the greenback against six peers, rallied 0.7% to 109.0, heading back towards last week's two-decade peak of 110.79, as the euro, pound and yen all declined.

German borrowing costs extended their rise with the 10-year Bund yield up 6 bps to 1.7%.

(Reporting by London Markets Team; Editing by Tommy Reggiori Wilkes)