GLOBAL MARKETS-Shares hit by tech problems and Brexit snags

* Brexit developments sap rally in global shares, pound
yanked off
%1.30
* Texas Instruments revenue forecast hits chipmakers
* China says report of HK's Carrie Lam being replaced has
"ulterior motives"
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
*

By Marc Jones
LONDON, Oct 23 (Reuters) - World stock markets fell on
Wednesday, as hopes faded that a Brexit deal would be wrapped by
next week and a profit warning from Texas Instruments pulled
down tech shares.
It was hard to pick which was weighing on sentiment more in
early European trading. The pound was yanked down to $1.2850
from $1.30 GBP= after UK lawmakers put the brakes on the
government's Brexit plans again on Tuesday. Meanwhile, Europe's tech sector .SX8P fell 1.4%.
STMicroelectronics STM.MI , Dialog Semiconductor DLGS.DE and
Infineon IFXGn.DE all dropped after Texas Instruments slumped
10% TXN.O in after-hours Wall Street trading. Major Asian chipmakers, including Taiwan's TSMC 2330.TW
and South Korea's SK Hynix 000660.KS , had fallen on worries
the industry was being squeezed both by a downturn in global
demand and by the U.S.-China trade war.
"When there are tensions in trade and obstacles to trade,
what do businesses do? They become more cautious. And they pull
back," Rafael Lizardi, Texas Instruments' chief financial
officer, said after the company's results.
With investors seeking out safer assets again, the Japanese
yen climbed to a one-week high of 108.25 per dollar JPY= and
the Swiss franc CHF= gained early in Europe. FRX/
Adam Cole, a strategist at RBC Capital Markets, said Brexit
was driving a "general risk-off tone". Others pointed to the
growing likelihood UK Prime Minister Boris Johnson would now
push for a snap election. "Things could change very quickly today, depending on the EU
response," Cole said, referring to how long EU leaders would
extend the Oct. 31 Brexit deadline. But he added he didn't see
"much downside" risk for sterling now, with a no-deal Brexit off
the table.
The pound has surged 4.5% this month which, if it holds the
gains, will be its best month since January last year.
Receding worries about a no-deal Brexit also underpinned the
euro at $1.1122 EUR= , just below a two-month high of $1.1180.
The dollar was subdued before a Federal Reserve policy
meeting next week, where policymakers are expected to cut
interest rates by 0.25 percentage point.
In commodity markets, oil prices fell after data showed U.S.
crude inventories grew more than expected last week.
But prices generally held firm after China
signalled hopes for progress in upcoming trade talks with the
United States and OPEC and its allies considered deeper cuts in
production.
Brent crude LCOc1 futures fell 0.52% to $59.39 a barrel.
U.S. West Texas Intermediate crude CLc1 lost 0.81% to $54.04
per barrel.