European shares muted as investors assess US-Iran talks

BE Semiconductor Industries NV

Yesterday 08:06

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    June 24 (Reuters) - European shares were muted at open on Wednesday, as investors assessed developments in the U.S.-Iran negotiations, while defence company Rheinmetall dropped after a media report that Germany is set to scrap plans to build its biggest warship since World War Two.
     The pan-European STOXX 600 index .STOXX edged 0.02% lower to 634.50 points by 0715 GMT.
     Crude prices were trading near $76 a barrel, at early-March levels, on hopes that oil tankers stranded in the Gulf will move out of the Strait of Hormuz following a peace deal between Washington and Tehran. O/R
However, caution prevailed amid disagreement between both countries on the key terms of the deal. 
Traders were also watching for cues on the monetary policy path for major global central banks, as they priced in another 25 basis point interest rate hike by the European Central Bank by year-end, according to LSEG-compiled data.
On the STOXX 600, the aerospace & defence sector .SXPARO led declines, falling 1.7%, as German defence group Rheinmetall RHMG.DE slipped 12.3% after a report said that the country is set to scrap plans to build its biggest warship since World War Two and intends to buy eight smaller frigates from rival TKMS TKMS.DE. TKMS shares jumped 8.7%.
The real estate sector .SX86P gained the most on the benchmark, rising 2.4%, with Segro SGRO.L climbing 17% after U.S.-based Prologis PLD.N took its $16.6 billion bid public after the UK warehouse landlord rejected the bid. 
The tech sector .SX8P recovered and was up 0.3% after recording its biggest single-day drop in nearly five months in the previous session, as memory stocks in Asia rebounded, with South Korean shares .KS11 rallying 3.3%. 
Chipmaker Infineon IFXGn.DE rose 0.9%, and chip-equipment suppliers BE Semiconductor BESI.AS and ASML ASML.AS added 0.4% each.   
     

 (Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)
 ((utkarshtushar.hathi@thomsonreuters.com))