European shares fall as bond market sell-off rattles investors
* Pan-European FTSEurofirst 300 index down 1.7 pct
* Global bond sell-off puts pressure on the market
* Numericable-SFR up after raising profitability target (Updates prices, comment)
By Atul Prakash and Ahmed Aboulenein
LONDON, May 12 (Reuters) - European shares fell sharply on Tuesday as a sell-off in global bond markets led investors to trim their exposure to risk.
The pan-European FTSEurofirst 300 index was down 1.7 percent at 1,568.98 points by 1105 GMT and Germany's DAX fell 2 percent.
"We think this is temporary volatility that should work itself out, but it is nonetheless a sign of caution. We have to keep an eye on the bond market," said Ingo Speich, portfolio manager at Union Investment, who said he would use a recent build-up in cash to make more investments.
German Bund yields have been rising from extremely low levels, churning up volatility, in a global sell-off that has been puzzling analysts since the end of April.
"Should the weakness in bonds and emerging market currencies continue to intensify in the days ahead, it will be just a matter of time till major stock markets around the world will come under additional pressure also," said Markus Huber, senior analyst at Peregrine & Black. Continuación...