European shares hit 3-month low after Russia's nuclear doctrine sparks risk-off moves
Thyssenkrupp jumps after strong Q4 with positive FCF
Nestle to cut costs by $2.8 bln, boost marketing
Sonova slides as H1 core earnings miss expectations
STOXX 600 down 0.9%
Rewrites headline, updates volatility index level in paragraph 6
By Ankika Biswas and Joao Manuel Vicente Mauricio
Nov 19 (Reuters) -Europe's main stock index fell to a three-month low on Tuesday, as heightened geopolitical tensions following Russia's warning on its updated nuclear doctrine prompted investors to shift from risky assets to safe havens.
The pan-European STOXX 600 .STOXX dropped 0.9%, shedding early gains, and was on track for a third straight day of loss, with safe-haven assets such as the gold and the U.S. dollar back on the rise.
The Kremlin said the aim of the updated nuclear doctrine was to make potential enemies understand the inevitability of Russian retaliation for an attack.
"I don't think this will have any impact on the (European) economy or earnings. It's just a natural reaction based on anytime the word nuclear is mentioned from any head of state," said Patrick Armstrong, chief investment officer at Plurimi Wealth.
"It obviously sets investors' minds about potential downside as well as an equity investment is driven by the hope for an upside. So I don't think it's anything other than rhetoric, and the market will just get past it."
The Euro STOXX volatility index .V2TX surged to 20.34, and was hovering near the highest levels seen this month, signalling growing investor anxiety.
Automobiles .SXAP and banks .SX7E slumped around 2% each, the worst-hit sectors in an overall market decline.
The upcoming appointments for U.S. Treasury secretary and trade representative under President-elect Donald Trump is also in focus after last week's picks for health and defence roles.
Investors are starting to question the effect of Trump's inflationary policies like possible tax cuts, while also awaiting AI chip leader Nvidia's NVDA.O earnings on Wednesday, said Richard Hunter, head of markets, Interactive Investor.
With ECB policymakers expressing concern over potential U.S. trade tariffs hurting euro zone growth, any signals on the global interest rate-cut trajectory will be closely watched.
Trump's policies are also seen as reigniting inflationary fears, and could complicate prospects of further U.S. rate cuts.
Among single stocks, Thyssenkrupp TKAG.DE jumped 8% after releasing its fourth-quarter results, with a trader pointing to free cash flow a positive surprise.
Embracer EMBRACb.ST rose 2% as Tabletop games publisher Asmodee is set to be spun off from the Swedish gaming group.
Swiss hearing aid maker Sonova Holding SOON.S fell 2% following half-year core earnings miss.
Nestle NESN.S reversed early gains to drop 1.3%. The food giant is set to boost advertising and marketing, trim costs by $2.8 billion by 2027 and carve out its water and premium drinks businesses into a standalone global unit.
Shares of Aeroports de Paris ADP.PA rose 3% after Stifel upgraded the French airport operator's stock to "buy" from "hold".
Reporting by Ankika Biswas in Bengaluru and Joao Manuel Vicente Mauricio in Gdansk; Editing by Eileen Soreng, Sherry Jacob-Phillips and Varun H K
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