European ADRs Edge Lower as Telecom Stocks Slide

American depository receipts of European stocks were 0.4% lower at 119.05 on the Bank of New York Mellon Europe ADR Index on Wednesday morning.

Decliners in continental Europe were led by Swedish telecommunications major Telefonaktiebolaget LM Ericsson (ERIC), 18.5% lower after warning that its business results for Q3 would be “significantly lower” than its previous expectations saying that weaker demand for mobile broadband had accelerated. Nokia (NOK), a technology investor, was 4.3% lower, followed by Italian telecommunication company Telecom Italia (TI) down 2.8% and STMicroelectonics (STM), a manufacturer of semiconductors, down by 2.5%.

In the UK, pharmaceutical companies Adaptimmune Therapeutics (ADAP) and Midatech Pharma (ADAP) were 12.5% and 5.8% lower, respectively, while Luxfer (LXFR), a materials technology company, and Royal Bank of Scotland (RBS) were 3.1% and 1.3% lower, respectively.

Gainers in continental Europe were led by Dutch financial services company Aegon – New York Shares (AEG), 4.4% higher, followed by Nabriva Therapeutics (NBRV), an Austria-based clinical-stage biopharmaceutical company, up by 3.8% and Sequans Communications (SQNS), a French developer of chipset solutions, up by 2.8% and voxelJet (VJET), a German three-dimensional printer manufacturer, 2.8% higher.

And, in the UK, Randgold Resources (GOLD), a gold producer, led gainers by rising 2.0%, followed by financial services providers Aviva (AV) and Prudential (PUK), 2% and 1.7% higher, respectively, and Rio Tinto (RIO), a metal miner, up by 1.4%.

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