Europe midday: Stocks turn lower amid Middle East concerns

(Sharecast News) - European stocks had turned lower come midday as investors kept a wary eye on the ongoing conflict in the Middle East. Israel's threat to launch a ground offensive is a major cause for concern for markets, on the back of fears of the conflict spreading further afield.

However, diplomatic efforts were thought to be helping investor sentiment, with US president Joe Biden scheduled to make a visit to Israel on Wednesday.

The Stoxx 600 Index was off 0.3% at 449.02 by 1217 BST, although the FTSE rising 0.3% to 7,656.29.

France's CAC 40 and FTSE MIB were 0.24% lower and the DAX by 0.46%.

Leaving the Middle East aside for a moment, all eyes were on the third-quarter earnings season in the U.S..

While the previous week saw results from Citigroup and JPMorgan Chase; Tuesday would see earnings earnings reports from corporate heavyweights Johnson & Johnson, Goldman Sachs and Bank America; while Netflix and Tesla were scheduled to publish their figures on Wednesday.

The German ZEW economic sentiment index came in at -1.1 for October, against -11.4 for September (consensus: -9.3).

U.S. retail sales figures for September were due for release at 1330 BST.

In European company news, shares in Ericsson slumped after the Swedish telecoms group removed its guidance for 2024 owing to macro uncertainty.

"Given current uncertainty we will not give guidance beyond 4Q 2023," said chief executive Borje Ekholm. "We prudently plan for current market conditions to prevail into 2024."

The company expects to report an adjusted fourth-quarter EBITD margin of just 10%, well below the target range of 15-18% previously forecast for mid-2024.

Engine maker Rolls-Royce was a tad higher on the news that it will cut up to 2,500 jobs worldwide as part of a plan to streamline the organisation. Rolls-Royce said the changes being proposed will remove duplication and deliver cost efficiencies.

UK housebuilders reversed early losses brought on by Bellway's announcement of an 18% slump in full-year profits and gave a gloomy outlook, causing shares of peers Barratt Developments and Taylor Wimpey to fall.