LIVE MARKETS-Morning headline round-up: Shire stands out

* 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

MORNING HEADLINE ROUND-UP

Among the flow of Q1 earnings, the accepted $64 billion offer from Japan's Takeda

Pharmaceutical stands out on the front page this morning.

Also, to watch in the banking sector:

Credit Suisse (IOB: 0QP5.IL - news) posts Q1 profit beat as revamp hits home stretch

Nordea Q1 profit tops forecast, cautious on revenue guidance

Lloyds Bank just misses forecasts with $2.23 bln first quarter profit

Income funds turn sights on UK banks as end of PPI saga draws closer

U.S. senators push banks for information on Russian 'oligarchs'

ANALYSIS-After Carney surprise, chance of May BoE rate hike down but not out

For the Apple (NasdaqGS: AAPL - news) supply chain saga:

STMicro Q1 profits grow, sees "healthy demand" in second-half

Apple shares drop on more warnings from iPhone supply chain

Earnings reports in other sectors:

Statoil Q1 lags slightly, uses cash to reduce debt ratio

Aluminium maker Hydro to miss cost target amid Brazil woes

Kloeckner & Co raises profit outlook on higher steel prices

Linde (IOB: 0H3X.IL - news) beats profit expectations, confirms full-year outlook

Clariant (IOB: 0QJS.IL - news) posts Q1 sales beat as catalyst business

Telefonica Germany confirms guidance as mobile revenues edge

Gucci craze keeps sales at luxury firm Kering (LSE: 0IIH.L - news) booming

(Julien Ponthus)

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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'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)