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Apple warning shakes European shares as chipmakers tumble

Published 03/01/2019, 08:44
Updated 03/01/2019, 08:45
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt
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LONDON (Reuters) - Apple's first revenue warning in nearly 12 years sent European shares sliding on Thursday with the tech sector particularly badly bruised as chipmakers which supply to the iPhone maker fell sharply.

The pan-European STOXX 600 (STOXX) fell 0.7 percent as Europe joined a selloff in Asia with the Apple (NASDAQ:AAPL) warning compounding fears of slowing global growth.

Apple's Frankfurt-listed shares (F:AAPL) fell 8.9 percent after the tech giant cut its revenue forecast, blaming weaker iPhone sales in China, whose economy has been hit by an ongoing trade war with the U.S.

Chipmakers who supply parts to Apple were the worst-hit. Shares in AMS (S:AMS), which provides the facial recognition sensors used in the latest iPhones, fell 19.4 percent to the bottom of the STOXX.

Dialog Semiconductor (DE:DLGS) tumbled 7.8 percent, while Infineon (DE:IFXGn), ASML (AS:ASML), ASM International (AS:ASMI), Logitech (S:LOGN), and STMicroelectronics (MI:STM) fell 3.4 to 5.9 percent.

The tech sector (SX8P) was the worst-performing, down 2.4 percent while only telecoms stayed in the black.

Luxury goods shares, which are also highly sensitive to signs of slowing demand in China, joined the selloff.

LVMH (PA:LVMH), Kering (PA:PRTP), Burberry (L:BRBY), and Swatch (S:UHR) were down 2.7 to 3.8 percent, among the biggest fallers.

Among rare gainers, Next (L:NXT) shares topped the STOXX with a 5.9 percent gain after the clothing retailer reported a rise in sales in the run-up to Christmas in line with its own expectations.

© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

Peer Marks & Spencer (L:MKS) also gained 3.3 percent.

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