European shares fall as bond market sell-off rattles investors
* Pan-European FTSEurofirst 300 index down 1.2 pct
* Global bond sell-off puts pressure on the market
* Numericable-SFR up after raising profitability target
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 1.2 percent at 1,576.25 points by 3000 GMT and Germany's DAX fell 1.7 percent.
"Bond-like equities, or high-yielding bond proxies such as consumer staples, are already looking quite expensive, and this sort of bond-market reaction is not helpful for them," said Victoria Leggett, portfolio manager at Union Bancaire Privee.
"Markets have had a strong run since the beginning of the year and investors have been preparing for a correction."
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. Continuación...