European shares fall as bond market sell-off rattles investors
* Pan-European FTSEurofirst 300 index down 1.6 pct
* Global bond sell-off puts pressure on the market
* Numericable-SFR up after raising profitability target
By Atul Prakash
LONDON, May 12 (Reuters) - European shares fell sharply in morning trading on Tuesday as a sell-off in global bond markets led investors to trim their risk exposure.
The pan-European FTSEurofirst 300 index was down 1.6 percent at 1,570.88 points by 0836 GMT and Germany's DAX fell 1.8 percent, with investors trimming their trading equity positions following a sharp rise in bond yields.
"It's a matter of concern for the market," Ian Richards, global head of equities strategy at Exane BNP Paribas, said.
"When any particular asset class goes through periods of extreme volatility in a short space of time, people feel the pressure to take their risk exposure lower. Of course, there is an overlap from what may be a bond market event into the equity space."
German Bund yields rose as a global sell-off in bond markets resumed. The sell-off has puzzled investors and analysts since the end of April. Traders have blamed it on a rise in inflation expectations, higher oil prices, and restricted liquidity, but the full picture is far from clear. Continuación...