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European shares off to sluggish start as miners weigh, FTSE up

Published 05/31/2017, 03:31 AM
Updated 05/31/2017, 03:40 AM
© Reuters. People walk through the lobby of the London Stock Exchange in London
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MILAN (Reuters) - European shares opened flat on Wednesday, weighed by a fall in mining stocks and lifted by a big rise for Ericsson (BS:ERICAs) after an activist investor bought a stake in the telecoms equipment firm.

The broader pan-European STOXX 600 index (STOXX) was down 0.02 percent by 0712 GMT and euro zone blue chips (STOXX50E) added 0.1 percent. The FTSE (FTSE) rose 0.2 percent, helped by a weaker pound which fell after a new poll showed Britain risks a hung parliament following a June 8 election.

Ericsson (ST:ERICb) rose 4 percent, leading STOXX gainers, after Cevian Capital bought a stake of more than 5 percent, saying it saw significant potential in the Swedish firm.

Cellnex (MC:CLNX) was another strong gainer after a Bloomberg report said that American Tower (N:AMT) may bid. Cellnex said its management has had no contact with American Towers.

Top loser was Metro (DE:MEOG) after the German retailer reported results showing a loss at its consumer electronics division.

© Reuters. People walk through the lobby of the London Stock Exchange in London

The Basic Resources index (SXPP), where major mining companies are listed, was the biggest sectoral faller, dropping 1.4 percent.

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