European shares at 1-1/2-month low after BOJ's policy shift

(For a Reuters live blog on U.S., UK and European stock

markets, click LIVE/ or type LIVE/ in a news window) Dec 20 (Reuters) - European shares fell on Tuesday,

bogged down by real estate and technology stocks, after the Bank

of Japan rattled global markets with a surprise policy shift

that would allow long-term interest rates to rise more. The region-wide STOXX 600 index was down 0.9% by

0808 GMT, touching its lowest levels since Nov. 10. The BOJ decided to allow the 10-year bond yield to move 50

basis points either side of its 0% target, wider than the

previous 25 basis point band, in a move aimed at easing some of

the costs of prolonged monetary stimulus. The policy tweak was widely seen as the beginning of a

potential end to Japan's ultra-loose monetary policy and comes

just as hawkish messages from other major central banks last

week doused hopes of an end to monetary policy tightening any

time soon. Germany's DAX index was down 0.8%, with German 10-year bond

yields touching their lowest in more than one month.

Rate-sensitive real estate and technology shares

led declines on the STOXX 600, dropping 1.9% and 1.6%,

respectively. Miners shed 1.2% as prices of copper fell on worries

about near-term demand from China after fresh COVID-19 cases hit

the country's industrial activity. Shares of Orange fell 1% after the French telecoms

group said its deputy chief executive and head of finance, Ramon

Fernandez, is leaving the company.

(Reporting by Amruta Khandekar; Editing by Sherry

Jacob-Phillips)