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Feb. 18, 2020, 6:11 a.m. EST

European chip stocks tumble on Apple warning, while HSBC slumps on profit slide

UBI Banca soars on surprise offer from Intesa Sanpaolo1

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By Barbara Kollmeyer, MarketWatch


AFP via Getty Images
A woman wearing a protective facemask walks outside of a closed-off Apple Store in Beijing on February 3, 2020.

European stocks came under pressure on Tuesday, with chip makers heading south after Apple warned it will miss its quarterly revenue target due to coronavirus fallout, while shares of HSBC slid as it announced a profit slump and suspension of buybacks.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +2.48%  fell 0.5% to 429.64, a day after marking a fresh record close of 431.98, a gain of 0.3%. The German DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +3.36%  dropped 0.7%, while the French CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +3.71%  fell 0.5% and the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +2.25%  slipped 0.5%.

U.S. stock futures were under pressure, with S&P 500 futures /zigman2/quotes/209948968/delayed ES00 +2.44%  down 0.5%, while tech-heavy Nasdaq-100 futures /zigman2/quotes/210219788/delayed NQ00 +1.89%  sliding around 0.9%. The Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK +0.74%  dropped over 1%, while Korea’s KOSPI /zigman2/quotes/210598069/delayed KR:180721 +1.43%  tumbled 1.4%.

In a warning that came while Wall Street was closed for the Presidents Day holiday, Apple /zigman2/quotes/202934861/composite AAPL +2.85%  said it was unlikely to meet its revenue target for the quarter ending in March, triggering a more than 3% drop in premarket trading of shares, and losses across global equities. Apple said production among its suppliers in China is ramping up slowly after an extended Lunar New Year break to stem the spread of the virus.

In the chipmaking space, shares of Dialog Semiconductor /zigman2/quotes/203017921/delayed DE:DLG +7.72% and ASM International NV /zigman2/quotes/201180544/delayed NL:ASM +6.33%  slid around 5% each, while AMS /zigman2/quotes/205647546/delayed CH:AMS +4.40%  fell around 4%.

Meanwhile, an economic sentiment survey from the ZEW institute in Germany came in much weaker than expected. ZEW blamed “feared negative effects of the coronavirus epidemic in China on world trade.” China reported 1,886 new coronavirus infections and 98 deaths as of Tuesday. However, the Chinese Centers for Disease Control and Prevention published a study Monday showing that 80% of those infected suffered only mild illnesses.

Banks were the biggest losing sector in Europe, led by shares of HSBC /zigman2/quotes/208272822/composite HSBC +5.57%   /zigman2/quotes/203901799/delayed UK:HSBA +5.90%  dropped over 5% after Europe’s biggest lender said it would cut 35,000 jobs and strip out $100 billion in assets in a move to scale back Europe and U.S. operations as 2019 profit slumped 53%. HSBC also said its dividend would be suspended for this year and 2021 due to the costs of its restructuring.

Italian stocks were bucking a weaker trend, with the FTSEMIB Italy index /zigman2/quotes/210598024/delayed IT:I945 +2.82%  rising 0.1% thanks to a 26% rise in shares of Unione di Banche Italiane SpA. UBI Banca /zigman2/quotes/200732627/delayed IT:UBI +5.35%  received a surprise offer from larger peer Intesa Sanpaolo SpA on Monday night to buy the Italian lender. Intesa Sanpaolo /zigman2/quotes/206161760/delayed IT:ISP +4.66%  shares rose 1.4%.

/zigman2/quotes/210599654/delayed
XX : STOXX
375.32
+9.07 +2.48%
Volume: 0.00
June 5, 2020 5:50p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,847.68
+417.12 +3.36%
Volume: 168,928
June 5, 2020 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,197.79
+185.81 +3.71%
Volume: 186,841
June 5, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,484.30
+142.86 +2.25%
Volume: 1.37M
June 5, 2020 4:59p
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 3,186.50
+76.00 +2.44%
Volume: 2.33M
June 5, 2020 3:12p
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/zigman2/quotes/210219788/delayed
US : U.S.: CME
$ 9,808.50
+182.25 +1.89%
Volume: 503,488
June 5, 2020 3:12p
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/zigman2/quotes/210597971/delayed
JP : Nikkei
22,863.73
+167.99 +0.74%
Volume: 0.00
June 5, 2020 3:00p
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/zigman2/quotes/210598069/delayed
KR : Korea Exchange
2,181.87
+30.69 +1.43%
Volume: 854,591
June 5, 2020 3:30p
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 331.50
+9.18 +2.85%
Volume: 33.57M
June 5, 2020 4:00p
P/E Ratio
25.99
Dividend Yield
0.99%
Market Cap
$1397.04 billion
Rev. per Employee
$1.98M
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/zigman2/quotes/203017921/delayed
DE : Germany: Frankfurt
39.61
+2.84 +7.72%
Volume: 1,548
June 5, 2020 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
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/zigman2/quotes/201180544/delayed
NL : Netherlands: Euronext Amsterdam
126.00
+7.50 +6.33%
Volume: 551,688
June 5, 2020 5:39p
P/E Ratio
17.80
Dividend Yield
1.19%
Market Cap
€5.79 billion
Rev. per Employee
€375,094
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/zigman2/quotes/205647546/delayed
CH : Switzerland: SWX
CHF 17.22
+0.73 +4.40%
Volume: 4.69M
June 5, 2020 5:30p
P/E Ratio
6.68
Dividend Yield
N/A
Market Cap
CHF4.33 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208272822/composite
US : U.S.: NYSE
$ 26.55
+1.40 +5.57%
Volume: 9.98M
June 5, 2020 4:00p
P/E Ratio
29.71
Dividend Yield
7.50%
Market Cap
$102.44 billion
Rev. per Employee
$366,224
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/zigman2/quotes/203901799/delayed
UK : U.K.: London
422.95 p
+23.55 +5.90%
Volume: 47.75M
June 5, 2020 4:35p
P/E Ratio
28.39
Dividend Yield
0.00%
Market Cap
£81.34 billion
Rev. per Employee
N/A
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/zigman2/quotes/210598024/delayed
IT : Borsa Italiana
20,187.51
+553.48 +2.82%
Volume: 0.00
June 5, 2020 5:35p
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/zigman2/quotes/200732627/delayed
IT : Italy: Milan
2.97
+0.15 +5.35%
Volume: 12.99M
June 5, 2020 5:35p
P/E Ratio
12.85
Dividend Yield
0.00%
Market Cap
€3.20 billion
Rev. per Employee
€232,018
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/zigman2/quotes/206161760/delayed
IT : Italy: Milan
1.77
+0.08 +4.66%
Volume: 296.12M
June 5, 2020 5:35p
P/E Ratio
7.24
Dividend Yield
0.00%
Market Cap
€29.61 billion
Rev. per Employee
€400,827
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Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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