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Chipmakers drag European shares lower after Broadcom shock
Published at 14/06/2019 at 08:16

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

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 , AMS

and STMicroelectronics , Siltronic , Dialog Semiconductor all dropped between 2% and 3% after Broadcom Inc outlined the impact of a total halt in sales to Huawei.

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

Energy stocks were an outlier, up 0.2%, with oil majors Total SA and Royal Dutch Shell providing the biggest boost.

(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;))