European shares fall as Nokia and chip maker BE reported ‎profit slump

European shares fell on Thursday, as investors worried about persistent inflation and tightened central bank measures, while falling profits for chip maker BE Semiconductor and telecommunication company Nokia raised fears of an economic slowdown.

According to “Reuters”, Nokia’s stock fell 4.1% after the Finnish telecom equipment company’s quarterly operating profit fell short of analyst expectations. Its rival Ericsson also posted weaker-than-expected profits

BE Semiconductor shares fell 2.8% after the company expected fourth-quarter revenue to decline, warning that US restrictions on exports to China added to uncertainty over the industry’s outlook.

The pan-European Stoxx 600 index fell 0.4%, extending its decline from the previous session, as a series of worrying inflation data fueled fears that central banks will need to continue to tighten monetary policies, as well as optimism dissipated after recent earnings reports.

German 10-year government bond yields rose to 2.43%, their highest level since August 2011, which put more pressure on stocks.

However, Finnish Nordea Bank’s profit beat estimates, and Hermes saw a sharp rise in sales growth with no signs of slowing down. Nordea shares reversed early gains and fell slightly, while Hermes rose 4%.