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Tech slide drags European shares lower as Brexit delay looms

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Tech slide drags European shares lower as Brexit delay looms
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 22, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)
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(Reuters) – European shares fell on Wednesday as a warning from U.S.-based Texas Instruments about a slowdown in the global tech industry weighed on European technology stocks, while UK lawmakers hit the pause button on Britain’s exit from the European Union.

The tech sector <.SX8P> fell 1.3%, dragged down by shares of STMicroelectronics <STM.MI>, Dialog Semiconductor <DLGS.DE> and Infineon Tech <IFXGn.DE> after poor forecasts from sector proxy Texas Instruments <TXN.O>.

The pan-European STOXX 600 index <.STOXX> fell 0.4% by 0711 GMT. FTSE midcap stocks <.FTMC> and Irish equities <.ISEQ>, barometers of Brexit expectations, lost 0.3% and 0.2% respectively.

UK lawmakers approved Prime Minister Boris Johnson’s deal on Tuesday, but defeated his proposal to push the legislation through Parliament in three days, prompting Johnson to recommend that the European Union delay the Oct. 31 deadline for the UK to leave the bloc.

Carmaker PSA Group <PEUP.PA> fell 0.6%, weighing on auto stocks <.SXAP>, after the company lowered its outlook for major auto markets, confirming trouble for the sector after last week’s poor earnings from Renault <RENA.PA> and Volvo <VOLVb.ST>.

Heineken <HEIN.AS> shares dropped 1.5% after the world’s second-largest brewer forecast operating profit this year would be at the lower end of its previous outlook.

(Reporting by Lisa Pauline Mattackal in Bengaluru; Editing by Shounak Dasgupta)

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