LONDON: European shares declined on Wednesday in early deals as worries over rising bond yields trumped a slew of well-received earnings updates from Kering and Credit Suisse, while Shire bounced after accepting an improved offer from Takeda.

The pan-European STOXX 600 index was down 0.5 per cent, pulling further away from its highest level since the beginning of February, while Germany's DAX fell 0.6 per cent. Britain's FTSE 100 was down 0.4 per cent.

Concerns over higher bond yields continued after the yield on the US 10-year Treasury breached the symbolic 3 per cent level on Tuesday, raising questions over the relative attractiveness of equities and sectors which pay steady dividends.

On the day, almost every European sector was in negative territory, with shares in oil and gas stocks among the biggest fallers as the oil price inched away from recent highs.

Even some upbeat earnings reports failed to boost sentiment. Shares in Kering were the biggest STOXX gainers, up 7 per cent after the luxury goods company posted an impressive performance in its first quarter results thanks to flying demand for its Gucci clothing and handbags.

Credit Suisse stood out among banks, its shares jumping 4.6 per cent after beating first-quarter profit expectations as a revamp at the bank bore fruit.

While concerns around semiconductor stocks, in particular those in the Apple supply chain, have weighed on chipmakers this week, STMicroelectronics saw its shares rise 4.8 per cent after an upbeat assessment on second-half demand for its smartphones-focused products.

In M&A news, shares in Shire popped 1.4 per cent after saying that it would recommend Takeda's sweetened $64 billion bid offer to shareholders.

But a number of companies saw their shares punished. Osram Licht dropped 11 per cent after cutting its guidance, while Atlas Copco fell 7.2 after reporting results.