Chipmakers drag European shares lower after Broadcom shock

Credit: REUTERS/STAFF

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

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June 14 (Reuters) - Technology shares led European shares lower on Friday after U.S. chipmaker Broadcom warned of a broad slowdown in demand due to trade tensions and the U.S. ban on Chinese tech and mobile phone company Huawei Technologies.

The forecast of a $2 billion hit to sales at one of the biggest U.S. players in the sector came as Chinese industrial output growth slowed to a more than 17-year of 5% 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 IFXGn.DE, AMS AMS.S and STMicroelectronics STM.MI, Siltronic WAFGn.DE, Dialog Semiconductor DLGS.DE all dropped between 2% and 3% after Broadcom Inc AVGO.O outlined the impact of a total halt in sales to Huawei.

The pan-European STOXX 600 index .STOXX fell 0.38% by 0707 GMT, with Germany's trade-sensitive DAX .GDAXI falling 0.40%.

Energy stocks .SXEP were an outlier, up 0.2%, with oil majors Total SA TOTF.PA and Royal Dutch Shell RDSa.L providing the biggest boost. O/R

(Reporting by Amy Caren Daniel and Medha Singh in Bengaluru; editing by Patrick Graham)

((Amy.CarenDaniel@thomsonreuters.com ; within U.S. +1-646-223-8780; outside U.S. +91 80 6749 9250 ; Reuters Messaging: Amy.CarenDaniel.thomsonreuters.com@reuters.net;))

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