LIVE MARKETS-European stocks futures dip

* European stocks futures open lower

* Wall St falls after Caterpillar (LSE: 0Q18.L - news) , Alphabet (Xetra: ABEA.DE - news) results

* Stocks in Asia also weak

LONDON, April 25 (Reuters) - Welcome to the home for real-time coverage of European equity

markets brought to you by Reuters stocks reporters and anchored today by Kit Rees. Reach her on

Messenger to share your thoughts on market moves: kit.rees.thomsonreuters.com@reuters.net

EUROPEAN STOCKS FUTURES DIP (0606 GMT)

It's looking like it's going to be a downbeat session with stocks futures heading south. On

the other hand, index moves could remain range-bound given that attention is going to be on the

flurry of earnings reports this morning.

Here's your futures snapshot:

(Kit Rees)

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RISING BOND YIELDS - TROUBLE FOR EQUITIES? (0553 GMT)

As the yield on the U.S. 10-year Treasury holds close to the psychologically-significant 3

percent level, this may prompt investors to reconsider their allocations to equities, especially

those sectors which pay relatively high dividends whose yield could now be eclipsed by bonds.

For analysts at Credit Suisse (IOB: 0QP5.IL - news) 's wealth management division, equities still retain their

appeal even if they do see bond yields gradually going higher.

"Solid economic growth should see policy normalization continue, thereby keeping yields on

an upward path. On the other hand, spikes in risk aversion and moderately rising inflation will

likely limit the pace of rise in bond yields," analysts at Credit Suisse WM said in a note.

"This gradual climb in yields is not likely to threaten our overweight equity stance."

Another worry is whether this rise in yields will lead to a soft spell in equity markets, or

a correction.

"The market’s reaction is decidedly more measured this time. Not only have stocks stayed out

of the correction zone so far, flows into the yen (the risk off trade) are nowhere near levels

seen two months ago," Jasper Lawler, head of research at London Capital Group, said.

(Kit Rees)

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MORNING CALL: EUROPEAN SHARES SEEN OPENING LOWER (0528 GMT)

Good morning. European shares are expected to open lower this morning, according to

financial spreadbetters, as worries over rising bond yields persist while weakness in tech held

back U.S. indexes.

Spreadbetters see Britain's FTSE opening 53 points lower, Germany's DAX falling 111 points

and France's CAC down 42 points.

Results from industrial heavyweight Caterpillar and tech giant Alphabet prompted drops in

both stocks in the U.S. - it just goes to show how little room there is for disappointment.

Overnight in Asia equities were also downbeat.

(Kit Rees)

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(Reporting by Danilo Masoni, Helen Reid, Kit Rees and Julien Ponthus)