European stocks on Friday trimmed earlier gains, trading little changed after people familiar with the matter said the European Central Bank (ECB) discussed whether interest rates can rise before its bond-buying program comes to an end.
The STOXX 600 added less than 0.1 percent at 4:11pm in London, paring its weekly decline to 0.6 percent.
The benchmark on Friday erased an intraday drop after ECB President Mario Draghi said downside risks to the euro-area economy were less pronounced.
ECB Governing Council members meeting on Thursday exchanged views on ways of communicating and sequencing an exit from unconventional stimulus, according to people familiar with the matter.
The Dutch AEX rose above its 2015 closing high and reached its highest level since December 2007.
BT Group PLC rose 3.8 percent after it agreed to legally split off its Openreach network division into a separate entity as demanded by Britain’s telecommunications regulator.
“We see this as positive for investor sentiment on BT in terms of removing a notable overhang, an absence of negative surprises and avoiding a prolonged period of uncertainty had Ofcom taken its case to the EC,” analysts at UBS said in a note.
Akzo Nobel NV rose 4.6 percent after Het Financieele Dagblad reported PPG Industries is preparing a second bid for the coatings maker.
Energy shares led STOXX 600 gains after dropping for four straight sessions.
BNP Paribas SA strategists say European equities could outperform the US.
“Eurozone equities have outperformed US equities over the past two weeks, since our ‘love panic’ model suggested that investors are pricing excessive optimism for US equities and pessimism for eurozone equities,” the firm’s equity and derivatives strategists wrote in a note.
Stronger-than-expected jobs data in the US earlier on Friday also helped, further cementing expectations of a rate hike next week in the world’s largest economy. Futures traders are betting that an increase in interest rates at next week’s US Federal Reserve meeting is a virtual certainty.
“Higher yields mean that [financials] will have better prospects for revenues, less pressure on their shoulders to generate revenues,” London Capital Group senior market analyst Ipek Ozkardeskaya said.
Additional reporting by Reuters
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president