UPDATE 1-European shares fall further as mounting trade fears hit cyclicals

* STOXX hits lowest in 11 months, DAX above early March low

* Cyclicals lead sectoral losers, defensives outperform

* Precious metal miners lifted by safe haven demand(For a live blog on European stocks, type LIVE/ in an Eikonnews window)

By Danilo Masoni

MILAN, March 23 (Reuters) - European shares fell on Fridaywith autos and basic resources stocks bearing the brunt of awide sell-off triggered by mounting worries that U.S. tariffs onup to $60 billion of imports from China could escalate.

All sectors were trading in negative territory, sendingpan-regional STOXX 600 benchmark index falling for asecond day, down 1.4 percent to its lowest level since February2017.

All eyes were on the response from China, which urged theUnited States on Friday to "pull back from the brink", andunveiled its own plans to impose tariffs on up to $3 billion ofU.S. imports.

Although risks that the tariffs could trigger a full-blowntrade war, some investors said they still did not expect that tohappen, highlighting that the retaliation measures announced byChina remained relatively mild.

Caution, however, pushed investors into defensive stockslike utilities and telecoms, which declined byless than 1 percent but outperformed the broader market, as theyare seen as less exposed to a deterioration in global trade.

Euro zone indexes including the export-sensitive DAXalso fell more 1.8 percent but remained above earlyMarch lows, while the FTSE dropped 1.1 percent to fresh15-month lows reached on the back of a strengthening pound.

"Our central scenario remains one in which retaliation willbe contained and will leave little impact on growth, but therisk of it happening alone is enough for us to maintain apreference for defensive assets," said UniCredit economists ledby Chiara Silvestre in a note.

Enel fell 0.2 percent after Italy's biggestutility reported growth a 14.4 percent growth in its 2017ordinary net profit last year that to beat its own guidance.

Among the few gainers on Friday were shares in metal minersFresnillo, Randgold and Polymetal ,all up between 0.5 and 1.5 percent, as the gold price rose onthe back of growing demand for safe haven assets.

Still on the tariff front, the previously announced U.S.tariffs on steel and aluminium imports will take effect onFriday but more countries, including the European Union, haveobtained a temporary exemption.

"In theory it would be a soothing news but in reality itrisks making the confrontation between the U.S and Chinaharsher," said JCI Capital fund manager Alessandro Balsotti.

Among the companies, exposed to U.S. steel and aluminiumtariffs, shares in carmakers Fiat Chrysler and BMWfell 2.5 and 2.1 percent respectively, while steeltube maker Tenaris dropped 4.1 percent andThyssenKrupp declined 2.7 percent.

Elsewhere in corporate arena, Indivior plunged 4.4percent following an U.S. court ruling against the maker ofopioid addiction treatment Suboxone. Indivior said it intendedto appeal against the ruling in favour of generic competitorAlvogen.

Among the few gainers, GSK rose 2.9 percent after itpulled out of the bidding war for Pfizer's consumer healthbusiness <PFE.N,> following in the footsteps of ReckittBenckiser earlier this week.(Reporting by Danilo MasoniEditing by Alison Williams)