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Friday July 02, 05:21
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European Stocks Drop as Technology Shares Slide
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European stocks declined, led by chipmakers including Royal Philips Electronics NV and Infineon Technologies AG, after Morgan Stanley said Intel Corp.’s revenue outlook may fall short of forecasts.
The Dow Jones Stoxx 50 Index shed 0.3 percent to 2673 as of 11:49 a.m. in London. The Stoxx 600 lost 0.3 percent. The Euro Stoxx 50, a benchmark for the 12 countries sharing the euro, dropped 0.4 percent.
The Stoxx 600’s technology group was the worst performing of the benchmark’s 18 industries last quarter amid concern higher U.S. interest rates would curb spending. The Federal Reserve increased its benchmark rate for the first time in four years on Wednesday. Intel’s sales forecast might be as much as 2.3 percent less than predicted, a Morgan Stanley analyst said yesterday, according to people familiar with the comments.
``We are cautious about technology stocks,’’ said Matthias Fankhauser, who manages $16 billion at Bank Hofmann AG in Switzerland. ``The spending climate isn’t that rosy and profit expectations may be too high.’’
The Labor Department may say U.S. employers added a quarter- million workers to payrolls in June, according to the median of 73 forecasts in a Bloomberg News survey. The report is due at 8:30 a.m. in Washington.
The Stoxx 50 slipped 1.7 percent since last Friday. The Stoxx 600 shed 1.1 percent in the week, while the Euro Stoxx 50 dropped 0.9 percent.
(Bloomberg)
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