Chip makers drop European Stoxx 600 index

The pan-European STOXX 600 index declined on Friday, led by semiconductor manufacturers, after weak reports from Samsung and Advanced Micro Devices. At the same time, recession fears persisted amid signs that central banks will remain decisive in tightening monetary policy.

The Stoxx 600 index was down 0.2 percent by 0704 GMT, tracking the impact of the Asian trading session.

The index closed lower on Thursday after the release of the minutes of the last meeting of the European Central Bank exacerbated concerns about the state of inflation in the eurozone and raised interest rates significantly to curb it.

All eyes are on the US non-farm payrolls report, due at 1230 GMT, which will likely signal a slowdown in job growth in September.

Shares of European chip makers fell after South Korea’s Samsung Electronics and America’s Advanced Micro Devices reported disappointing earnings and forecasts, which means the sector’s downturn could be much worse than expected.

The technology sector index fell by 1.6 percent.

Credit Suisse shares rose 2.7 percent after the bank announced it would buy back up to 3 billion Swiss francs ($3 billion) of debt securities, in a show of strength as it sought to reassure investors after a turbulent week.