Oil relief lifts European stocks, but telecoms tumble on SpaceX's US spectrum deal
TMUS•European stocks rose 0.9% as oil prices and bond yields eased, while the telecom index fell 3.4% to an eight-month low after SpaceX agreed to acquire a nationwide US spectrum portfolio. Analysts expect STOXX 600 companies to post 21% third-quarter profit growth.
1. Stocks rebound as oil eases
The pan-European STOXX 600 rose 0.9% to 630.83 points on Friday, recovering after closing at a nearly four-month low on Thursday. Oil prices dipped more than 1% after U.S. President Donald Trump said the United States would not attack Iran before next month's midterm elections. Euro zone bond yields also pulled back after reaching multi-decade highs this week.
2. Telecom shares slide
The European telecom index fell 3.4% to an eight-month low after SpaceX struck a deal to acquire a nationwide low-band spectrum portfolio in the United States. Deutsche Telekom dropped 8%, while its 54%-owned T-Mobile US fell 7% in U.S. premarket trading. Vodafone declined 4.5%, Orange fell 3.4% and Telefonica dipped 3.3%.
3. Earnings in focus
Investors are awaiting third-quarter earnings to assess companies' performance amid higher inflation and interest rates and political uncertainty. LSEG data shows analysts expect STOXX 600 companies to post 21% profit growth from a year earlier, with energy and basic materials expected to provide the biggest boost.
