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

European shares opened flat on Wednesday, weighed by a fall in mining stocks and lifted by a big rise for Ericsson after an activist investor bought a stake in the telecoms equipment firm.

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

Ericsson rose 4 per cent, leading STOXX gainers, after Cevian Capital bought a stake of more than 5 per cent, saying it saw significant potential in the Swedish firm.

Cellnex was another strong gainer after a Bloomberg report said that American Tower may bid. Cellnex said its management has had no contact with American Towers.

Top loser was Metro after the German retailer reported results showing a loss at its consumer electronics division.

The Basic Resources index, where major mining companies are listed, was the biggest sectoral faller, dropping 1.4 per cent.