US telcos shed $45bn in value after SpaceX announces spectrum purchase
Elon Musk takes big step towards launching Starlink mobile service for US consumers
European equities experienced a brief rebound on Friday, attempting to recover from a significant drop earlier in the week. However, the overall weekly finish for regional stock markets remains negative. The Stoxx Europe 600 Index rose by 0.8%, pulling France’s CAC 40 and London’s FTSE 100 up by 0.8% each. Spain’s IBEX 35 also gained 1%.
Despite this, European telecom stocks saw a decline following the news of SpaceX's acquisition of low-band spectrum, which raised concerns about the increasing competition from satellite-based mobile services. Deutsche Telekom dropped by 8%, Vodafone declined by 4.5%, Orange lost 3.4%, and Telefonica slipped by 3.3%. On the brighter side, Soitec gained 7% after being upgraded to a "buy" by BofA Securities and its price target increased to €300 from €152.
French equities underperformed the others, with the CAC 40 index nearing its lowest levels since March and facing a potential 2% weekly decline, marking its second consecutive weekly loss.
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