🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

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
NXT
-
MKS
-
LOGN
-
UHR
-
LVMH
-
STMPA
-
IFXGn
-
PRTP
-
AAPL
-
BRBY
-
ASMI
-
ASML
-
DLGS
-
STOXX
-
AMS
-
SX8P
-

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.