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

(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. The 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. "We 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. Heineken 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.
Mining 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 . Auto stocks .SXAP were up 0.3% as PSA Group PEUP.PA rose
2% after sales of its SUVs boosted quarterly revenue.
Shares 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.