Europe open: Shares slump on Middle-East tensions, Wall Street

16th Apr 2024 08:27

(Sharecast News) - European shares opened sharply lower on Tuesday after hefty losses on Wall Street as investors waited for Israel's response to a missile attack by Iran on Saturday.

The pan-regional Stoxx 600 index was down 1.39% at 498.91 with all major markets down. US and Asia markets led the downward trend overnight, with investors caught on the hop by news that electric car maker Tesla was axing 10% of its workforce.

Tensions remain high in the Middle East as Israel vowed to retaliate, with key Western powers calling for calm amid fears the conflict could easily escalate into a much larger war.

"The ongoing uncertainty has left its mark on stocks across the globe, with the effect of fear being compounded by a mixed start to earnings season," said Hargreaves Lansdown analyst Sophie Lund-Yates.

In economic news, the UK unemployment rate in the three months to February rose to 4.2%.

In equity news, Ericsson shares were up after the company released first quarter results.

Dr Martens shares slumped by a third after issuing another profit warning and announcing the departure of chief executive Kenny Wilson.

Global payments technology company Wise fell almost 8% despite saying it continued to enjoy a strong uptake for its services during the last quarter of its fiscal year.

Reporting by Frank Prenesti for Sharecast.com