REFILE-UPDATE 1-Hexagon's weak outlook pulls down European shares ahead of U.S. jobs data

(Corrects a typo in paragraph 10)
* Hexagon slips after Q2 sales warning
* Chipmakers weak after Samsung's forecast
* German industrial orders weaker than expected in May

By Medha Singh
July 5 (Reuters) - European shares snapped its six-day
winning streak on Friday as industrial stocks slid after
Sweden's Hexagon gave a downbeat outlook blaming the U.S.-China
trade war and investors stayed cautious ahead of a crucial U.S.
jobs data.
The pan-European STOXX 600 index .STOXX was down 0.3% by
0815 GMT, but was still set for its fifth straight weekly rise.
The index had closed at a more than 12-months high a day
before, helped by a rally fuelled by hopes of an easing economic
policy from major central banks and by news that the United
States and China were going to restart their trade talks.
Citi economist Catherine Mann said the temporary trade truce
is vulnerable to further escalation should the negotiations fall
apart.
"The U.S.-China handshake has not removed trade policy
uncertainty, which is still weighing on the global growth
outlook," Mann said.
Meanwhile, the long-drawn trade spat showed its impact on
Swedish industrial technology group Hexagon HEXAb.ST , which
announced 700 job cuts and warned of a drop in quarterly organic
sales. Its shares tumbled 13.6% to the bottom of STOXX 600. The
results weighed on the shares of Schneider Electric SCHN.PA ,
Siemens SIEGn.DE and Sandvik SAND.ST and pulled the
industrial index .SXNP down 1.5%.
"Industrials are in focus this morning and attracting the
most action following the surprise warning from Hexagon," a
trader said. "A fairly big cut for a 1-month downturn, citing
China, sending shockwaves into the local companies and Chinese
tech exposures."
The pain from the tit-for-tat U.S.-China tariff war on the
semicondutor industry once again came to the fore after Samsung
Electronics 005930.KS forecast a plunge in its second-quarter
operating profit.
The news dragged technology shares .SX8P 0.8% lower, with
AMS AMS.S , STMicroelectronics STM.MI and Siltronic
WAFGn.DE slipping between more than 1%. In U.S. financial markets, investors will return from
Independence Day holiday to focus on the non-farm payrolls,
which is due at 12:30 GMT.
U.S. job growth was likely to rebound in June, but that
would probably not be enough to discourage the Federal Reserve
from cutting interest rates this month amid growing evidence the
economy is slowing. Dampening the sentiment further was data which showed German
industrial orders fell far more than expected in May.
Defensive sectors such as real estate .SX86P , utilities
.SX6P and telecom .SXKP , which are popular in times of
economic strife, eked out gains, while mining .SXPP stocks,
down 1.7%, were among the biggest drags on the markets.
Britain's FTSE 100 .FTSE fell 0.25%, more than its peers,
pressured by declines in mining majors Rio Tinto plc RIO.L and
BHP Group BHPB.L .