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:) sent shockwaves through the tech sector, highlighting the impact of the coronavirus outbreak on global demand and supply.

The pan-European STOXX 600 index () 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:) 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:) dropped more than 6%, while those of STMicroelectronics NV (MI:) and Dialog Semiconductor PLC (DE:), which supply components to Apple, fell 4% and 4.9%, respectively.

The technology-heavy German stock index () plunged 0.9%, while the European tech subindex () fell 1.5%.

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