Bond market jitters, euro rebound weigh on European shares
LONDON May 14 (Reuters) - European shares extended a losing streak on Thursday as bond market jitters and a rebound in the euro currency, whose weakness has benefited many European exporters, weighed on stocks.
The pan-European FTSEurofirst 300 index was down by 0.6 percent at 1,560.75 points in early session trading, although the index remains up by around 14 percent since the start of 2015.
Italian shoe maker Tod's fell 2.3 percent after it posted a larger-than-expected drop in first-quarter core earnings, although insurer Generali rose 1.4 percent after posting higher profits.
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. (Reporting by Sudip Kar-Gupta; Editing by Lionel Laurent)
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