LIVE MARKETS-Before the bell: Europe down as US yields spike

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

BEFORE THE BELL: EUROPE DOWN AS US YIELDS SPIKE

European shares were set to fall on Thursday following an overnight spike in Treasury yields on concerns President Donald Trump's proposed tax bill could further inflate the U.S. deficit.

Weak demand in a U.S. bond auction on Wednesday drove Wall Street down sharply, while pushing 30-year yields above 5%, a level which could hurt appetite for stocks. U.S. fiscal worries continued in Asia.

EuroSTOXX50, DAX and FTSE futures fell 0.5-0.6%, although U.S. contracts pointed to a steady start for Wall Street near lows hit the day before. Bitcoin's surge to new record highs, meanwhile, showed the mood across markets was not all risk-off.

The earnings season carried on with a better-than-expected profit at insurer Generali GASI.MI, a 1% profit rise at BT BT.L, while airline easyJet EZJ.L said it was seeing strong demand.

In M&A, Johnson Matthey JMAT.L sold its division that houses technologies to make sustainable fuels to Honeywell International HON.O for $2.4 billion including debt.

(Danilo Masoni)