Ericsson and Nokia both posted weaker than expected results in the third quarter, weighing heavily on the shares of the two largest European telecoms equipment makers amid a worsening outlook for industry across the region.

Sweden’s Ericsson was hit hardest as its shares fell 14 per cent in trading on Thursday to a two-year low, coming close to their lowest level since 2018. Finland’s Nokia also suffered as its shares dropped 5 per cent as investors worried about delays in signing new patents and licensing deals with telecoms groups.

Following a flurry of Nordic results, investors appear to be more concerned about future demand and earnings among industrial companies as the prospect of recessions in many developing countries looms — in contrast to the performance of many of the region’s banks, whose results revealed positive surprises because of increasing interest rates.