LIVE MARKETS-Rising bond yields - trouble for equities?

* European shares seen opening lower -spreadbetters

* 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

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)

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