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Fresenius tops DAX on Tyenne launch in the US
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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)