European benchmark stock indexes rose for the third week in four, fueled by optimism the US-led war in Iraq will end in weeks, not months.
Munich Re and Swiss Reinsurance Co gained after JP Morgan Chase & Co said recent declines that pushed some reinsurers to their lowest levels in more than seven years made the shares worth buying. Chemical companies such as Clariant AG rose as the price for an oil-based raw material fell.
The Dow Jones Stoxx 50 Index climbed 1.2 percent Friday and was up 3.6 percent from a week earlier. The broader Stoxx 600 Index added 1.1 percent to 188.31, for a five-day jump of 3.1 percent. The indexes, which tumbled more than 5 percent last week, advanced even after the release of economic statistics such as falling payrolls in the US, Europe's biggest export partner.
"News coming from Iraq has been setting the pulse in markets for the past two weeks," said Jaime Hoyos, who helps manage the equivalent of US$536 million at Indosuez Fondos SA in Madrid. "Economic data has been below expectations, but markets are ignoring that fact."
The US economy lost 108,000 jobs in March, almost three times the number expected, as growth faltered with the advent of war, the Labor Department said. Economists had expected payrolls to fall by 35,000 after a 308,000 drop in February, based on the median of 67 forecasts in a Bloomberg News survey.
All 18 of the Stoxx 600 industry groups gained this week, led by chemical and automobile stocks. The worst-performing index on the Stoxx 600 was retail, which added 0.5 percent.
The 17 Western European benchmark indexes also advanced.
France's CAC 40 added 3.8 percent in the week, Germany's DAX climbed 5.3 percent and the UK's FTSE 100 rose 2.9 percent.
Units of Iraq's Republican Guard probably have retreated into Baghdad to prepare for an attack, and allied troops may face tough resistance, US and UK officials said yesterday. As many as 2,500 Republican Guard soldiers surrendered to US forces advancing on the capital city from Kut, Cable News Network reported, citing an unidentified US military spokesman at Central Command headquarters in Doha, Qatar.
JP Morgan Thursday raised its recommendation on reinsurers, which provide coverage to insurers rather than to individuals or businesses, to "overweight" from "neutral." The bank also raised ratings on Munich Re and Hannover Re to ``overweight'' from "neutral." Swiss Re, the world's second-largest reinsurer, climbed 0.7 percent to SF77.30, for a 9.3 percent gain this week.
The company's earnings estimates were raised to 6.7 francs a share for this year and 8.8 francs for next year, from SF4.6 and SF7.3, respectively, by JP Morgan. Last month, the shares dropped to their lowest since September 1995.
Munich Re gained 4.9 percent to 64.10 euros, advancing 8.4 percent from the previous Friday's close. The stock has fallen enough to account for concern about the erosion of capital as stock markets slump, JP Morgan said.
Hannover Re, the world's fifth-largest reinsurer, jumped 7.3 percent to 19.34 euros, for a gain of 4.8 percent in the week.
Clariant and BASF AG paced chemical company gains as prices dropped for naphtha, a key raw material for petrochemicals that can be processed into products ranging from plastics to artificial sweeteners.
UPM-Kymmene Oyj, the world's third-biggest papermaker, fell 8.3 percent to 11.56 euros yesterday, bringing its drop this week to 7.9 percent. First-quarter profit at the Helsinki-based company fell about 50 percent because of lower paper prices and a weaker US dollar against the euro, it said on Thursday.
Stora Enso Oyj, the world's biggest papermaker by capacity, declined 1.8 percent to 8.79 euros, losing 2.2 percent this week.
"We will see more of these announcements, and in different industries," said Indosuez Fondos' Hoyos. "Business didn't go well in March for most companies."
Hoyos owns shares in STMicroelectronics NV.
ST, Europe's biggest semiconductor maker, fell 4 percent to 17.7 euros, sliding 4.8 percent this week. The company's first-quarter revenue was less than forecast as prices declined and clients pared orders in March. Revenue in the period was US$1.618 billion. In January, the company predicted sales of at least US$1.62 billion.
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
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Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day