GLOBAL MARKETS-Shares turn lower, data hits sterling

(Recasts with latest price moves, adds Wall Street outlook)

By Natsuko Waki

LONDON, May 13 (Reuters) - European shares and sterling fell on Tuesday after news of falling profits at Europe's banks and UK data showing a jump in inflation, a weakening housing market and soft retail sales reinforced the gloom about the economy.

Oil fell further away from Monday's record peak, while a firmer dollar pushed gold and platinum lower.

Soaring food and fuel bills pushed up Britain's inflation rate by its biggest amount in nearly six years, denting expectations of growth-boosting interest rate cuts.

At the same time, surveys cemented the view that the UK economy was losing momentum. House prices fell in every region of Britain in April with surveyors reporting the widest margin of decline in at least 30 years. Retail sales values fell for a second consecutive month in April.

"The concern is we are now about to enter a period of high inflation and much slower growth," said Jeremy Batstone-Carr, head of private client research at Charles Stanley.

"But obviously, by not cutting interest rates any more, the risk is that the UK economy goes through a period of even slower growth and possibly flirts with recession."

Sterling fell half a percent to $1.9480 <GBP=>, approaching Monday's 2-1/2 month low.