European shares slump as Apple warning hammers tech sector

European shares dropped on Tuesday as a revenue warning from iPhone maker Apple Inc 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 per cent 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 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 dropped more than 6 per cent, while those of STMicroelectronics NV and Dialog Semiconductor PLC, which supply components to Apple, fell 4 per cent and 4.9 per cent, respectively.

The technology-heavy German stock index plunged 0.9 per cent, while the European tech subindex fell 1.5 per cent.