Carmakers and real-estate companies led European stocks higher on Friday, paring their first weekly decline in three.
Auto-related shares rose the most among 19 industry groups, with Porsche SE climbing 2.4 percent after its board members were said to be cleared in a probe over a failed attempt to take over Volkswagen AG. French shopping-mall operator Klepierre SA added 2.5 percent. Commodity stocks retreated, with Glencore PLC falling 1 percent.
The STOXX Europe 600 Index advanced 0.4 percent to 388.12 at 8:32am in London, heading for a weekly drop of 2.3 percent.
The gauge posted its biggest two-day loss of the year earlier this week after China devalued its currency, before rebounding 1 percent yesterday. It has retreated 6.3 percent since an April record. The yuan stabilized on Friday after China’s central bank raised its reference rate and said it will intervene to prevent excessive swings.
In European news, Greek lawmakers approved a third bailout package in Athens, a vote tally showed.
Separately, data showed Germany’s economy grew at a slower-than-forecast pace in the second quarter, while France’s stagnated, compared with economists’ projections for 0.2 percent growth.
Among stocks moving on corporate news, Swiss Life Holding AG climbed 1.5 percent after posting first-half net income that beat estimates. Schindler Holding AG rose 0.9 percent after posting an increase in first-half profit.
Energy shares fell.
BP PLC declined 0.9 percent as it faces penalties after a US judge concluded that the energy producer manipulated markets in Texas in 2008.
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
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
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
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s