STOXX 600 near 6-week low amid geopolitical tensions

European stock indices fell to their lowest levels in nearly six weeks on Tuesday as traders moved away from high-risk assets in light of the geopolitical tension in the Middle East, while Ericsson shares rose to the top of the main index following positive business results.

According to Reuters, by 0718 GMT, the European STOXX 600 index fell 1.3%, with the basic resources sector declining 2%, affected by weak basic metal prices.

Stock indices in major economies in the region, such as Germany, France, Italy and Spain, fell by between 1% and 1.4%.

Traders are watching closely as the world awaits the Israeli response to the Iranian attack, with increasing international pressure for restraint amid fears of the expansion of the conflict in the Middle East.

On the positive side, Ericsson shares jumped 5.6% after the communications equipment maker’s adjusted profits in the first quarter were higher than market expectations.

Naturgy shares rose 2.8% after a report stated that the UAE energy company is in talks with Criteria Holding Company regarding a possible acquisition of the Spanish energy company.