(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* TUI, Ryanair, IAG tumble as Asia COVID-19 cases spike

* Banking, mining, and industrial stocks retreat

* Healthcare and energy stocks set to post solid monthly gains

* Burberry plunges as CEO resigns to join Ferragamo (Adds comments; updates prices)

By Sagarika Jaisinghani

June 28 (Reuters) – European travel stocks sank 2% on Monday on the back of a spike in COVID-19 cases across Asia, while worries of a sudden tapering in ultra-loose global monetary policy in the wake of rising inflation kept the STOXX 600 below record highs.

The pan-European STOXX 600 was down 0.2% by 0813 GMT, with travel-related stocks TUI, Ryanair Holdings and IAG sliding between 1.9% and 3.2%.

The travel and leisure index fell to a one-month low, tracking declines in Asia as infections