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Tech stocks weigh on European shares after Apple's warning

Reuters
Reuters
 2021-10-29

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

Oct 29 (Reuters) - Technology stocks dragged down European equity markets on Friday as Apple’s suppliers fell on the back of a downbeat holiday-quarter forecast from the iPhone maker, while investors remained nervous about the monetary policy outlook.

Shares in semiconductor companies AMS, STMicronelectronics, Infineon Technologies and ASML lost between 0.3% and 1%, weighed down by supply chain woes that cost Apple Inc $6 billion in quarterly sales.

Europe’s tech index fell 1%, while miners dropped 0.9% after UK-listed Glencore’s production update.

The pan-European STOXX 600 dropped 0.5% by 0711 GMT amid a nervous global mood fuelled by disappointing earnings updates from Wall Street’s tech giants and persisting inflation fears.

European Central Bank President Christine Lagarde on Thursday disappointed market expectations that she would push back firmly against recent moves in markets which are pricing in two rate hikes by December 2022.

Among gainers, premium German carmaker Daimler added 1.4% after posting a higher quarterly profit despite a 30% drop in Mercedes-Benz sales due to the chip crisis.

French aerospace group Safran rose 2.7% after it raised its full-year cashflow target, while re-insurer Swiss Re gained 3.3% after reporting strong net profit results as it recovers from the pandemic. (Reporting by Anisha Sircar in Bengaluru; Editing by Subhranshu Sahu)

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