* FTSEurofirst 300 index down 0.5 percent
* Bond selloff, euro rise hurt market sentiment
* Cyclical sectors among top fallers
By Atul Prakash
LONDON, May 6 (Reuters) - European shares fell late on Wednesday, surrendering early gains as a rally in the euro and a fall on Wall Street prompted investors to trim their trading positions.
The FTSEurofirst 300 index of top shares was down 0.5 percent at 1,547.09 points by 1442 GMT after rising as high as 1,562.18 earlier in the session following strong euro zone services data and some encouraging corporate results.
“The euro is strengthening and that has taken some of the earlier tailwinds away from the market,” Gerhard Schwarz, head of equity strategy at Baader Bank, said, noting a stronger currency was negative for Europe’s export-oriented companies.
The euro climbed to a two-month high against the dollar, helped by business surveys pointing to a solid pick-up in euro zone economic activity and underpinned by German 10-year Bund yields that hit their highest this year.
The market sell-off gathered pace after U.S. stocks fell on disappointing data, including weaker-than-expected private jobs numbers, raising concerns about the economy’s potential to rebound from a first-quarter slump.
Europe’s cyclical sectors were among the worst performers, with real estate, automobile, construction and material and travel and leisure falling 1.2 to 2.0 percent.
Some encouraging company results supported the market. Danish wind turbine maker Vestas Wind, mobile phone operator Telenor and AB InBev, the world’s largest brewer, rose 1.1 to 3.0 percent.
Despite a largely positive earnings season, in which 63 percent of STOXX Europe 600 companies to have reported so far have met or beaten consensus forecasts, European shares have given back some of the hefty gains accumulated since the start of the year.
The FTSEurofirst is still up nearly 14 percent this year, in a surge largely fuelled by the European Central Bank’s asset-purchase programme and improved euro zone data.
Norwegian non-life insurer Gjensidige fell 3.7 percent after reporting first quarter pretax earnings below expectations. (Additional reporting by Francesco Canepa; Editing by Crispian Balmer and John Stonestreet)