European shares closed modestly higher on Friday after a solid jobs report for last month in the US and as shares in German banking powerhouse Commerzbank gained.
The German DAX Xetra 30 index ended up 0.29 percent at 6,241.15. The French CAC-40 index closed up 0.49 percent at 5,336.30. The UK's FTSE 100 index ended virtually flat at 6,148.10, pressured by declines in shares of British Airways and packaging group Rexam.
In the US, data showed the labor market is on a firmer footing than expected. Although US nonfarm payrolls grew by a lower-than-expected 92,000 last month, the unemployment rate fell to 4.4 percent, its lowest level in more than five years.
Shares of Commerzbank ended up 4.3 percent after its third-quarter net profit exceeded expectations. The German bank also said it expects this year to be one of the best in its history.
Shares of insurance giant Allianz gave up earlier gains to finish down 0.7 percent. It posted a higher net profit from the sale of one of its units and after a good performance from its non-life business.
Shares of British Airways, Europe's third-largest airline, fell 3.4 percent after it said profit dropped 1.8 percent in the second quarter as tough security measures at Heathrow airport after summer terrorism scares cost the company.
Irish low-cost airline Ryanair said the number of passengers it carried last month rose 23 percent to 3.7 million. Load factor slipped to 83 percent from 85 percent a year ago. Shares rose 0.8 percent in London.
Shares in packaging company and can maker Rexam declined 4.4 percent. It expects to post flat profits for plastic-packaging operations in the second-half of the year.
Media company Publicis fell 1.6 percent in Paris after it reported organic sales growth of 2.6 percent in the third quarter, lower than in the first two quarters of the year.
"The dip in third-quarter growth has two contributing factors: the winding down of work on some accounts and the cancellation of certain campaigns during the summer," the company said.
Euronext shares climbed 4 percent in Paris after the Daily Telegraph newspaper reported the European stock exchange operator was in talks to sell its 41.5 percent stake in clearing house LCH.Clearnet back to the company.
Shares in food and household products group Unilever ended up almost 1 percent as the company was upgraded to neutral from underweight at J.P. Morgan, which said positive news could support the shares in the next six to nine months.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s