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Europe: Shares fall as Apple guidance cut whipsaws tech stocks
[LONDON] European shares fell as Apple Inc's cut to its sales forecast reinforced concerns over global growth and pummeled technology shares.
The Stoxx Europe 600 dropped 0.8 per cent as of 8:05 am in London, led by the technology sector. Apple supplier ams AG lost 12 per cent, while Dialog Semiconductor Plc slid nearly 7 per cent.
Apple cut its first-quarter guidance for the first time in almost two decades, citing a slowdown in China and fewer upgrades to iPhone models. The move echoed growing worries that the global economy is cooling, after data on Wednesday showed slowing manufacturing activity in China and several euro-zone countries.
The Apple news "adds fuel to the fire of concerns about slowing global growth and/or a trade war," Mike van Dulken and Artjom Hatsaturjants, analysts at Accendo Markets, wrote in a note. "After Tesla announced price cuts, that's two New Year kicks for the tech sector."