# Chipmakers weigh on European shares; focus on U.S. jobs data Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-07 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: European Shares Slip as Semiconductor Firms Drag Down Meta Description: European shares slide as semiconductor firms falter post weak Samsung and AMD earnings. Central banks' aggressive policies spark recession fears. URL: https://financedigest.com/chipmakers-weigh-on-european-shares-focus-on-u-s-jobs-datahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-07t082426z2lynxmpei960bbrtroptp4europe-stocks-1736815078371-compressed.jpg) By Devik Jain (Reuters) -European shares slipped on Friday, led by semiconductor firms after weak earnings and forecasts from Samsung and Advanced Micro Devices, while recession fears lingered amid signs that central banks would remain aggressive with policy tightening. The continent-wide STOXX 600 index was down 0.3%, as of 0800 GMT, in line with a downbeat Asian trading session. \[MKTS/GLOB\] The index closed lower on Thursday after minutes from the [European Central Bank’s last meeting fanned fears about the state of inflation](https://www.financedigest.com/european-shares-set-for-weekly-gain-on-u-s-inflation-outlook.html "European shares set for weekly gain on U.S. inflation outlook") in the euro zone and aggressive policy moves to tame it. All eyes are on the U.S. nonfarm payrolls report, due at 1230 GMT, which will show [job growth](https://www.financedigest.com/u-s-job-growth-powers-ahead-unemployment-rate-at-3-4.html "U.S. job growth powers ahead; unemployment rate at 3.4%") likely slowed in September, although overall labour market conditions remain tight, providing the Federal Reserve with cover to continue hiking rates. The reason this [data set is a big](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") one, arguably the biggest since markets began to unravel, is because the data will show if the Fed’s enthusiastic interest rate hikes are now being felt in the jobs market,” said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown. Today’s news will shape the [Fed’s monetary decision](https://www.financedigest.com/wage-data-dents-dollar-recovery-before-fed-rate-decision.html "Wage data dents dollar recovery before Fed rate decision") in November. The STOXX 600 had rallied earlier this week after a smaller-than-expected [rate hike by Australian central bank](https://www.financedigest.com/ecbs-villeroy-rate-hike-signals-strong-confidence-in-european-banks.html "ECB’s Villeroy: rate hike signals strong confidence in European banks") and softer U.S. [economic data](https://www.financedigest.com/dollar-skids-after-soft-u-s-economic-data-impact-of-opec-cuts-fades.html "Dollar skids after soft U.S. economic data; impact of OPEC+ cuts fades") spurred hopes of central bank pivot. The index has [gained 1.9% so far in the week and is on pace for its best weekly](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") performance since late July. Meanwhile, data showed German [retail sales](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") fell more than expected in August, while industrial production contracted as supply bottlenecks remain due to pandemic-related distortions and the war in Ukraine. Among stocks, European chipmakers fell after [South Korea’s](https://www.financedigest.com/south-korea-has-not-supplied-lethal-weapons-to-ukraine-president-says.html "South Korea has not supplied lethal weapons to Ukraine, president says") Samsung Electronics Co Ltd and U.S. chipmaker AMD signalled the chip [slump could be much worse than expected](https://www.financedigest.com/german-industrial-orders-slump-more-than-expected-in-august.html "German industrial orders slump more than expected in August"). Infineon, BE Semiconductor, Soitec, Nordic Semiconductor, ASML, STMicroelectronics and ASMI dipped between 1.6% and 2.9%, dragging down the broader tech sector by 1.7%. Adidas lost 2.8% after the German sporting goods maker put under review its [business partnership](https://www.financedigest.com/types-of-business-partnership.html "Types of business partnership") with rapper and fashion designer Kanye West. Renault [jumped 3.7% to top the STOXX 600 index after ODDO BHF upgraded the French carmaker’s stock](https://www.financedigest.com/dollar-jumps-u-s-stocks-buck-global-rally.html "Dollar jumps, U.S. stocks buck global rally"). [Credit Suisse](https://www.financedigest.com/mitsubishi-ufj-to-postpone-at1-bond-issuance-in-credit-suisse-fallout.html "Mitsubishi UFJ to postpone AT1 bond issuance in Credit Suisse fallout") rose 3.3% after the lender said it would buy back up to 3 billion Swiss francs ($3 billion) of senior debt securities, making a show of strength as it seeks to reassure investors after a tumultuous week. (Reporting by Devik Jain in Bengaluru; Editing by Savio D’Souza and Subhranshu Sahu) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---