Europe's STOXX nears six-week low amid geopolitical jitters; Ericsson shines

Draegerwerk AG & Co KGaA

16/04/2024 08:02

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       April 16 (Reuters) - European shares dropped to a near
six-week low on Tuesday, as investor stayed clear of risky
assets given geopolitical tensions in the Middle East, while
Ericsson topped the main index following upbeat earnings.
    The pan-European STOXX 600  .STOXX  was down 1.3% as of 0718
GMT, with the basic resources sector  .SXPP  dropping 2%
tracking weak base metal prices.  MET/L 
    Equity indexes of major economies in the region such as
Germany  .DAX , France  .FCHI , Italy  .FTMIB  and Spain  .IBEX 
shed between 1.0% and 1.4%.
    Traders were on edge as the world awaited Israel's response
to Iran's first-ever direct attack against the country as
international pressure for restraint grew on fears of a widening
conflict in the Middle East.
    In bright spots, Ericsson  ERICb.ST  shares jumped 5.6%
after the telecom equipment maker's first-quarter adjusted
profit came ahead of market expectations.
    Naturgy  NTGY.MC  rose 2.8% 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.
        

 (Reporting by Ozan Ergenay and Johann M Cherian; Editing by
Mrigank Dhaniwala)
 ((johann.mcherian@thomsonreuters.com;
ozan.ergenay@thomsonreuters.com))