Tuesday 23 July 2019

Chipmakers drag European shares lower after Broadcom shock

(stock picture)
(stock picture)
Independent.ie Business Desk

Technology shares led European shares lower on Friday after US chipmaker Broadcom warned of a broad slowdown in demand due to trade tensions and the US ban on Chinese tech and mobile phone company Huawei Technologies.

The forecast of a $2bn (€1.8bn) hit to sales at one of the biggest US players in the sector came as Chinese industrial output growth slowed to a more than 17-year of 5pc in May and were among the clearest signs yet of the damage President Trump's trade war may do to global growth.

European semiconductor companies Infineon, AMS and STMicroelectronics, Siltronic, Dialog Semiconductor all dropped between 2pc and 3pc after Broadcom outlined the impact of a total halt in sales to Huawei.

The pan-European STOXX 600 index fell 0.38pc by 07:07 GMT, with Germany's trade-sensitive DAX falling 0.40pc.

Energy stocks were an outlier, up 0.2pc, with oil majors Total and Royal Dutch Shell providing the biggest boost.

Reuters

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