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

European shares retreat as trade worries weigh on tech

Published 04/07/2018, 08:42
Updated 04/07/2018, 08:51
© Reuters. A trader reacts at Frankfurt's stock exchange in Frankfurt
UK100
-
DE40
-
STMPA
-
IFXGn
-
CPG
-
BESI
-
MU
-
STOXX
-
OSRn
-
SX8P
-
SXTP
-
COTNE
-

LONDON (Reuters) - European shares slipped on Wednesday as worries over global trade persisted, with sentiment souring around semiconductor stocks in particular after U.S. peer Micron was banned from selling chips in China.

The pan-European STOXX 600 (STOXX) index was down 0.2 percent by 0723 GMT, while Germany's exporter-heavy DAX (GDAXI) also declined 0.2 percent and the FTSE 100 (FTSE) fell 0.3 percent.

Trading has been choppy ahead of a July 6 deadline when the United States is set to impose tariffs on $34 billion worth of goods from China.

Twists and turns in the tit-for-tat saga have hit market sentiment in recent weeks, with news a Chinese court temporarily banned Micron Technology (O:MU) from selling chips in China, the world's biggest memory chip market, hitting shares in U.S. and Asian semiconductor stocks.

Europe's tech sector (SX8P) was led 0.5 percent lower by falls in chipmakers STMicro (MI:STM) and Infineon (DE:IFXGn), which were both down around 2 percent.

Recent guidance cuts from BE Semiconductor (AS:BESI) and Osram Licht (DE:OSRn) have also weighed on sentiment around the sector, which has fallen more than 8 percent since June's 17-year high.

Smaller Swiss stock Comet (S:COTNE), whose business focuses on x-ray and radio frequency technology, issued a sales and profit warning for 2018 and saw its shares plunge 9.5 percent.

© Reuters. A trader reacts at Frankfurt's stock exchange in Frankfurt

Elsewhere a 1.9 percent fall in Compass Group's (L:CPG) shares weighed on European travel and leisure stocks (SXTP), after the catering firm said its finance chief was to leave the company by the end of the year, the second key executive change at Compass this year.

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.