Skip to main content

Apple warning shakes European shares as chipmakers tumble

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 fell 0.7 percent as Europe joined a selloff in Asia with the Apple warning compounding fears of slowing global growth.
Apple’s Frankfurt-listed shares 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, which provides the facial recognition sensors used in the latest iPhones, fell 19.4 percent to the bottom of the STOXX.
Dialog Semiconductor tumbled 7.8 percent, while Infineon, ASML, ASM International , Logitech, and STMicroelectronics fell 3.4 to 5.9 percent.
The tech sector 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, Kering, Burberry, and Swatch were down 2.7 to 3.8 percent, among the biggest fallers.
Among rare gainers, Next 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.
Peer Marks & Spencer also gained 3.3 percent. (Reporting by Helen Reid Editing by Matthew Mpoke Bigg)
Labels:

Comments

Post a Comment

Popular posts from this blog

Trump trade war poses threat to eurozone economy, warns ECB boss Mario Draghi

Draghi flagged 'the threat of protectionism' but still ended the central bank's €2.6 trillion money printing stimulus programme. The boss of the European Central Bank, Mario Draghi, has warned that Donald Trump’s trade war is hurting the eurozone. Unveiling weaker growth forecasts in Frankfurt on Thursday, Mr Draghi flagged “the threat of protectionism”. “When we look at all these drivers of the recovery, yes, it is true, it is just weaker. It is just weaker and it’s not just one off, it has been weaker for a while,” he said. “The risks surrounding the euro area growth outlook can still be assessed as broadly balanced. However, the balance of risk is moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility.” Nevertheless, the ECB also confirmed that this month will mark the end of its €2...
Post a Comment
Read more

This is what China is doing to avoid an economic slowdown.

People's Bank of China steps in to release 800bn yuan (£92bn) for new lending to households and businesses. China's central bank has relaxed the rules on how much capital the country's lenders must hold in cash reserves as it seeks to maintain growth. It is the fifth such time during the last year that the People's Bank of China (PBoC) has made such a move. The measure comes amid growing concerns about weakening demand from Chinese consumers and businesses. Apple shocked Wall Street when, on Wednesday evening, it said sales in its most recent quarter would be weaker than expected. It blamed a  drop in sales in China for the shortfall  and, specifically, the trade war between China and the United States instigated by President Donald Trump. Its warning sparked a sell-off in global stock markets already nervous about the possibility of a slowdown in the world's second-largest economy. China's economy is thought to have grown by just 6.5% in 201...
Post a Comment
Read more

Pelosi, Nielsen clashed during border-security meeting: 'I reject your facts,' House speaker said, according to report

"I reject your facts," House Speaker Nancy Pelosi, left, reportedly said to Homeland Security Secretary Kirstjen Nielsen during a border-security meeting this week. "These aren't my facts," Nielsen reportedly responded. "These are the facts." House Speaker Nancy Pelosi and Homeland Security Secretary Kirstjen Nielsen got into a tense confrontation this week, with the California Democrat interrupting Nielsen’s presentation on border security and illegal immigration, telling her “I reject your facts.” The clash between the top House Democrat and a key member of President Trump's Cabinet occurred during a Wednesday meeting in the White House amid the impasse over the government shutdown, with Trump standing firm and demanding $5 billion for the border wall. At one point during the meeting, according to the  Wall Street Journal , Pelosi interrupted Nielsen, who was citing statistics related to the border, including how many criminal illegal ...
Post a Comment
Read more