Oct 9 (Reuters) – European stocks recovered on Friday as oil prices eased on hopes of a pause in the Middle East war, while telecom stocks slid after SpaceX’s deal to acquire a nationwide spectrum portfolio caused ripples in the sector.
The pan-European STOXX 600 index climbed 0.8% to 630.47 points by 0718 GMT.
The index closed at a near four-month low on Thursday as a surge in oil prices and bond yields turned investors away from risky assets.
Oil prices dipped nearly 1% on Friday as Middle East supply concerns eased after US President Donald Trump said it will not attack Iran before US elections next month, offering relief to worries of elevated oil prices sparking inflationary pressures and forcing major central banks to aggressively tighten monetary policy. [O/R]
Euro zone bond yields also pulled back after touching multi-decade highs in recent days when investors grappled with concerns around inflation and soaring government debt burdens. [GVD/EUR]
Most European sectors rose on Friday but the telecom index stumbled 2.7%.
Deutsche Telekom fell 7% after SpaceX struck a deal to acquire a nationwide low-band spectrum portfolio, mounting a direct, orbital challenge to legacy wireless giants across the United States.
Deutsche Telekom holds a 54% stake in T-Mobile US, which slid 6% in after-hours trading.
Britain’s Vodafone dropped 3.5%, while France’s Orange fell 2.4% and Telefonica dipped 2.3%.
(Reporting by Sruthi Shankar in Bengaluru)
Comments