European Factors to Watch-European equity futures fall as bond market jitters lingers
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LONDON May 14 (Reuters) - European equity futures fell on Thursday, with global markets weighed down by jitters in the fixed income sector.
The euro zone's blue-chip Euro STOXX 50 futures index fell 0.4 percent, Germany's DAX futures retreated 0.7 percent while France's CAC futures also fell 0.5 percent.
A pick-up this week in benchmark German and U.S. bond yields has made equities look more expensive in comparison to debt, and caused some investors to trim back equity positions to cash in on the stock market rally so far this year.
"The bond market moves are making investors quite anxious. I think everyone expected yields to rise once we started to see a bounce in oil prices as, naturally, this would change people's inflation outlook," said Oanda senior market analyst Craig Erlam.
"The pace at which they've risen has been quite surprising, which is probably a consequence of a lack of liquidity in the market at the moment. A small change in attitude can have a much greater impact," he added.
Dealers added that a rebound in the euro currency, whose weakness this year has benefited European exporters, could also weigh on the region's stock markets. > GLOBAL MARKETS-Dollar sags after weak data, bond rout resumes > US STOCKS-Wall St little changed in earnings, data lull > Nikkei falls on bond market rout, Konica Minolta jumps > TREASURIES-Yields rise on supply; demand strong for 10-yr auction > FOREX-Dollar nurses losses after weak retail sales, kiwi jumps > PRECIOUS-Gold near 5-week high as soft US data eases rate rise fears > METALS-London copper flat, supported by weaker dlr, China easing hopes
> Oil slips, economic worries offset US crude stocks draw