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Tech slump gives European shares the Monday blues

Published 06/12/2017, 03:37 AM
Updated 06/12/2017, 03:40 AM
© Reuters. Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt

MILAN (Reuters) - A big fall in Apple suppliers and other tech stocks hurt European shares in opening deals on Monday, more than offsetting well-received election results in France and Italy.

Shares in chipmakers STMicro (PA:STM) and Dialog (DE:DLGS) fell more than 4 percent following heavy losses at U.S. and Asian peers.

The worst drop in Apple shares (O:AAPL) in 14 months on Wall Street on Friday sparked a bout of profit-taking across richly valued tech stocks that have soared to record highs this year.

Europe's tech index (SX8P) fell 2.3 percent, leading sectoral losers in Europe and on track for its biggest one day loss since October 2016. The index has soared around 40 percent over the last year to hit a 15 year high earlier this month.

The pan European index STOXX 600 (STOXX) was down 0.4 percent, mildly supported by gains in oil prices which lifted shares in energy stocks and by parliamentary election results in France which appeared set to give President Emmanuel a huge majority to push through his pro-business reforms.

Italy also offered some comfort after the eurosceptic 5-Star Movement suffered a severe setback in local elections.

Top gainer on the STOXX was Italian lender UBI Banca (MI:UBI), which rose 3 percent on the first day of its day of a 400 million euro cash call to strengthen its capital position after offering to take over three small rescued banks.

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