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STOXX 600 nears six-week low on geopolitical jitters; Ericsson shines
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STOXX 600 nears six-week low on geopolitical jitters; Ericsson shines
Apr 16, 2024 2:42 AM

*

Fresenius tops DAX on Tyenne launch in the US

*

Topdanmark ( TPDNF ) rises as Q1 beats expectations, ups guidance

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Naturgy up after report on takeover talks by Abu Dhabi's

TAQA

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STOXX 600 down 1.4%

(Updated at 0846 GMT)

By Ozan Ergenay and Johann M Cherian

April 16 (Reuters) - Europe's main stock index fell to a

near six-week low on Tuesday as investors stayed clear of risky

assets amid tensions in the Middle East, while Ericsson jumped

following upbeat earnings.

The pan-European STOXX 600 fell 1.4% as of 0846

GMT, dragged by a 3% drop in the basic resources sector.

The main index was on track for its worst day in almost nine

months.

The main indexes of Germany, France, Italy

and Spain shed between 1.4% and 1.8%, tracking

a global risk off mood as the world awaited Israel's response to

Iran's first-ever direct attack against the country.

"All of (the other factors) have now been put on second

level, and focus now is on escalation of risk coming from this

conflict in the Middle East," said Daniela Hathorn, senior

market analyst at Capital.com.

"We've also got earnings season expected to show a little

bit more weakness than they have in the past."

The STOXX 600 rallied since late 2023 to hit a record high

in February on the back of lower interest rate expectations,

with investors confident of a rate cut by the European Central

Bank in June.

Still, ECB policymaker Olli Rehn said that prospects for an

interest rate cut in June assume that there will be no further

setbacks in the geopolitical situation that affect energy prices

and thus inflation.

Focus is now on quarterly results, with earnings expected to

decline 11.2% in the first quarter from the previous year,

according to LSEG data.

Ericsson shares jumped 6.1% to top the benchmark

index after the telecom equipment maker's first-quarter adjusted

profit unexpectedly beat market expectations.

Naturgy jumped 5.7% after a report said Abu

Dhabi's TAQA was in talks with the Spanish holding vehicle

Criteria on a potential takeover of the Spanish energy company.

Topdanmark ( TPDNF ) rose 4.8% after the Danish insurer

reported first-quarter profits above expectations, and raised

its profit guidance by about 8%.

Fresenius rose 3.4%, topping Germany's DAX

after the healthcare group launched its intravenous

formulation of Tocilizumab for use in the treatment of chronic

autoimmune diseases in the U.S.

Meanwhile, Voestalpine dropped 6.1% after JPMorgan

downgraded the materials firm to "underweight" from "neutral".

Anglo American and Rio Tinto dropped 3.5%

and 2.4%, respectively, tracking weaker non-ferrous metals

prices as a stronger dollar made base metals more expensive for

holders of other currencies.

(Reporting by Ozan Ergenay and Johann M Cherian; Editing by

Mrigank Dhaniwala and Varun H K)

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