European shares slump as Apple warning hammers tech sector
(Reuters) - European shares dropped on Tuesday as a revenue warning from iPhone maker Apple Inc (O:AAPL) sent shockwaves through the tech sector, highlighting the impact of the coronavirus outbreak on global demand and supply.
The pan-European STOXX 600 index (STOXX) fell 0.8% by 0803 GMT, having ended at a record high on Monday after China outlined fresh stimulus measures to mitigate the virus' economic impact.
However, Apple's (O:AAPL) warning that it would miss its March quarter sales outlook due to the outbreak, along with news of a slower-than-expected recovery in the firm's Chinese factories swiftly culled any optimism.
Apple's Frankfurt-listed shares (F:AAPL) dropped more than 6%, while those of STMicroelectronics NV (MI:STM) and Dialog Semiconductor PLC (DE:DLGS), which supply components to Apple, fell 4% and 4.9%, respectively.
The technology-heavy German stock index (GDAXI) plunged 0.9%, while the European tech subindex (SX8P) fell 1.5%.