LONDON, Jan 3 — Apple’s first revenue warning in nearly 12 years sent European shares sliding today 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 per cent 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 per cent 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 US
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 per cent to the bottom of the STOXX.
Dialog Semiconductor tumbled 7.8 per cent, while Infineon, ASML, ASM International, Logitech, and STMicroelectronics fell 3.4 to 5.9 per cent.
The tech sector was the worst-performing, down 2.4 per cent 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 per cent, among the biggest fallers.
Among rare gainers, Next shares topped the STOXX with a 5.9 per cent 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 per cent. — Reuters
Source: The Malay Mail Online