Europe shares fall in early trade, track Wall St

                                
 * FTSEurofirst 300 falls 1.3 percent
                                
 * Banks among main lowers
                                
 * Upbeat European macro data fails to boost stocks
                                
 
                                
 By Brian Gorman
                                
 LONDON, May 28 (Reuters) - European shares were lower in
morning trade on Thursday, tracking a decline on Wall Street
after a spike in Treasury yields triggered a sell-off in equity
markets.
                                
 At 0829 GMT, the FTSEurofirst 300 <.FTEU3> index of top
European shares was down 1.3 percent at 859.13 points.
                                
 Banks were among the early fallers. HSBC <HSBA.L>, BNP
Paribas <BNPP.PA>, Credit Suisse <CSGN.VX>, Deutsche Bank
<DBKGn.DE> and UBS <UBSN.VX> fell between 1.4 and 3.1 percent.
                                
 "Bond yields are rising from extremely depressed levels, and
they show that expectations for the economy are improving," said
Bernard McAlinden, investment strategist at NCB Stockbrokers, in
Dublin.
                                
 "People are worried about inflation with all the money
that's being pumped into the system. That could nip the economic
recovery in the bud ... (though) the main driver will be
economic data coming through."
                                
 The European benchmark index is up 33.1 percent from the
lifetime low it hit on March 9 as investors have become more
confident about prospects of an upturn.
                                
 Insurers falling included France's Axa <AXAF.PA> and the
UK's Prudential <PRU.L>, down 3.6 and 3 percent respectively.
                                
 With the slide in U.S. equities hurting the price of copper
and other metals, miners fell.
                                
 Anglo American <AAL.L>, BHP Billiton <BLT.L>, Kazakhmys
<KAZ.L>, Rio Tinto <RIO.L>, Vedanta Resources <VED.L> and
Xstrata <XTA.L> were between 1.3 and 2.5 percent lower.
                                
 Across Europe, Britain's FTSE 100 <.FTSE>, Germany's DAX
<.GDAXI> and France's CAC-40 <.FCHI> were between 1.2 and 1.3
percent lower.
                                
 
                                
 MAN GROUP FALLS
                                
 Man Group <EMG.L>, the world's largest-listed hedge fund
firm, sank 12.5 percent after saying that assets under
management fell to $44 billion by May 26, from $46.8 billion at
end-March, and profit fell. [ID:nLR215413]
                                
 British building supplies company Wolseley <WOS.L> fell 9.9
percent after nine-month profits slumped 80 percent as most of
its markets weakened in March and April. [ID:nLR972877]
                                
 Relatively upbeat macroeconomic news failed to provide an
immediate lift.
                                
 The Conference Board research group's Leading Economic Index
for the euro zone rose 1.8 percent to 93.8 points in April,
suggesting the single currency area's economy may be bottoming
out. [ID:nBRQ007358]
                                
 German unemployment rose by a smaller-than-expected 1,000
month-on-month in May, adjusted for seasonal swings, Federal
Labour Office data showed.
                                
 The headline unadjusted figure declined by 127,000 to 3.458
million, the Office said, noting that statistical changes had
helped to improve the May jobless figures. [ID:nBAE001659]
                                
 Later in the session, attention will turn to weekly U.S.
jobless numbers.
                                
 U.S. stocks dropped on Wednesday as rising yields on U.S.
government debt fuelled concern that businesses and consumers
could face higher borrowing costs, which could hamper an
economic recovery.
                                
(editing by John Stonestreet)