LONDON (Reuters) - A global sell-off knocked world shares to a five-month low on Thursday as surging oil fanned concerns about inflation and slowing growth, just hours ahead of an expected euro zone interest rate hike and a key U.S. jobs report.

The gloom was rampant everywhere with Tokyo stocks setting their longest losing streak in more than half a century while the dollar hit a two-month low against the euro. Government bonds largely benefited from a global risk aversion.

The European Central Bank is set to become the first G7 central bank to raise interest rates since the credit crisis erupted in August. The decision is due at 7:45 a.m. EDT. At 8:30 a.m. EDT, ECB President Jean-Claude Trichet gives a news conference and at the same time the U.S. non-farm payrolls data is due.

Tightening comes as the global economy struggles with the chilling effects of an almost one-year-old financial turmoil.

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