CORRECTED-UPDATE 1-Tech stocks weigh on Europe, Brexit delay looms

  • Reuters
  • Stock Market News
CORRECTED-UPDATE 1-Tech stocks weigh on Europe, Brexit delay looms
Credit: © Reuters.

(Corrects to remove reference to Covestro's profit outlook in paragraph 11. The company is scheduled to report third-quarter results on Oct. 28)

* Texas Instruments' warning hits chipmakers

* Lawmakers reject PM Johnson's Brexit timetable

* Mining stocks up on Norsk Hydro earnings

* Auto stocks gain on PSA earnings

By Lisa Pauline Mattackal and Agamoni Ghosh

Oct 23 (Reuters) - European shares dipped for the first time this week on Wednesday, as warnings from Texas Instruments raised concerns about the global microchip industry, while UK lawmakers hit the pause button on Britain's exit from the European Union.

European tech stocks .SX8P were set for their worst day in two weeks, dragged down by chipmakers Infineon IFXGn.DE , Dialog DLGS.DE and STMicroelectronics STM.MI , as sector proxy Texas Instruments TXN.O forecast a 10%-17% drop in current-quarter revenue. pan-European STOXX 600 index .STOXX fell 0.1% as the Brexit saga hit another snag after British lawmakers rejected Prime Minister Boris Johnson's timetable. don't think the chances of a no-deal Brexit have increased, but the chance of a delay has definitely soured the mood," said Hubert de Barochez, markets economist at Capital Economics.

European stock markets have been rattled in the past few months by geopolitical concerns, a prolonged U.S.-China trade war and a manufacturing recession in the bloc's biggest economy, Germany.

After solid gains in the first quarter, the benchmark index lost steam in the second and third. It kicked off October with its smallest quarterly increase this year.

With the focus now squarely on corporate earnings, analysts expect a drop of as much as 5.3% in third-quarter profit, worse than the 3.7% fall expected a week ago, according to IBES data from Refinitiv. HEIN.AS shares lost 2.3% after the world's second largest brewer said operating profit this year would be at the lower end of its previous forecast. stocks .SXPP were the best performing European sector, lifted by a smaller-than-expected drop in quarterly profit at aluminum producer Norsk Hydro NHY.OL . stocks .SXAP were up 0.3% as PSA Group PEUP.PA rose 2% after sales of its SUVs boosted quarterly revenue. of Covestro AG 1COV.DE rose 2%, lifting the chemicals sub-sector .SX4P 0.5%.

Meanwhile, Brexit-sensitive FTSE midcap stocks .FTMC slipped 0.2%, underperforming their European peers, but losses were capped as the chances of a no-deal Brexit diminished.

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