European stocks extend sell-off on global growth jitters

viernes 10 de octubre de 2014 04:11 GYT

* FTSEurofirst 300 down 0.6 pct, hits 2-month low

* Chip makers hurt by Microchip's sales warning

* Lipper data shows weekly outflows from Europe stocks

By Blaise Robinson

PARIS, Oct 10 (Reuters) - European shares dropped on Friday, extending their recent pull-back and tracking steep losses in equities worldwide on mounting worries over the pace of global growth.

Chip makers featured among the biggest losers, with Infineon down 4.9 percent and STMicroelectronics down 3.7 percent after a sales warning from U.S.-based Microchip . It said it believes an industry correction has begun and that more bad news will be coming from other chip makers.

Microchip cut its forecast for fiscal second-quarter results, after experiencing subdued sales in September, especially in China, a month that is normally peak production season for devices destined for consumers buying electronics ahead of the year-end holidays.

The company is seen as an early indicator of demand in the global semiconductor industry because it is a highly diversified supplier of electronic components to some 80,000 customers and because it recognizes revenue when its distributors book sales to customers rather than simply when Microchip itself ships its products.

"Microchip noted that it was disappointed with the level of business activity and that sales in September did not materialize according to expectations. It also noted that the revenue miss was led by China. This is negative for both Infineon and STM," a Paris-based trader said.   Continuación...