European stocks on Friday rose for a second day as strength in the US jobs market bolstered optimism that the global economy is improving and speculation mounted that the centrist candidate will win France’s presidential election.
The STOXX Europe 600 added 0.7 percent at the close, after falling as much as 0.4 percent earlier in the day.
Energy shares advanced as oil rebounded, while mining shares jumped the most in seven weeks as metal prices climbed.
The STOXX 600 is up 1.9 percent this week, boosted by robust earnings and speculation that centrist Emmanuel Macron will win today’s final French presidential vote.
Commodity producers in the STOXX 600 jumped 2.6 percent, halting their longest stretch of declines in more than a month.
Oil rebounded after earlier losses that took it below US$44 per barrel. The decline in crude prices in the past month helped turn energy shares into the worst performers among STOXX 600 groups this year.
Following the strong US payrolls data, traders are pricing in a 100 percent chance the US Federal Reserve will raise interest rates in June, Fed fund futures show.
Some shares were active after reporting results. JCDecaux SA slid 4.1 percent after its second-quarter outlook was deemed cautious by some analysts.
Pearson PLC surged 12 percent after announcing further cost cuts and a strategic review of its troubled US education publishing business.
In the run-up to today’s French vote, Macron gained 3 points in Elabe poll, to 62 percent versus 38 percent for Marine Le Pen.
France’s CAC 40 Index climbed 1.1 percent, extending a nine-year high.
Marks & Spencer Group PLC added 5 percent after naming former Asda supermarket boss Archie Norman as its new chairman.
NOTABLE SHIFT: By 2030, 50% of all laptops would be assembled in Southeast Asia, while Taiwan would still mostly focus on research and development, a report said Global laptop and desktop computer supply chains are expected to shift significantly away from China in the next 10 years, a Market Intelligence & Consulting Institute (MIC, 產業情報研究所) report said. By 2030, only 40 percent of global laptop production would remain in China, said the report, which was released on Thursday. “The reshuffling of the global supply chain will be one of the most important trends in the next 10 years,” the institute said in the report. “In the long run, key component makers will follow laptop assemblers in moving out of China.” The Taipei-based institute predicted most key component makers
Merck Group Taiwan yesterday said that it plans to invest substantially on expanding its fab in Kaohsiung’s Lujhu District (路竹) to better serve its local customers, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電). The company said it plans to expand its production space by 50 percent in the next five years and its workforce by about 40 percent, Merck Group Taiwan managing director Dick Hsieh (謝志宏) told a media briefing in Taipei. Hsieh declined to disclose investment details, but said that the latest investment would exceed the total amount Merck has invested in Taiwan over the past few years. Those investments would be
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, has formed a strategic alliance with Hon Hai Precision Industry Co (鴻海精密) to develop key electronic components for electric vehicles and digital healthcare, it said yesterday. The alliance is to help Yageo boost its revenue from high-end components for vehicles and industrial, medical and aerospace devices, as well as those used in 5G and Internet-of-Things devices, the company said. The companies signed the strategic alliance agreement at Yageo’s headquarters in New Taipei City’s Sindian District (新店). Their cooperation is to start this quarter, the companies said in a joint statement. “Through the cooperation
SUPPLY CONSTRAINTS: The transferred orders might not provide an immediate revenue boost given local chipmakers’ high utilization rates, a senior analyst said Shares of local contract chipmakers yesterday rose as much as the 10 percent daily limit, as investors bet on orders being transferred from Semiconductor Manufacturing International Corp (SMIC, 中芯國際) after the US imposed export restrictions on the Chinese chipmaker. United Microelectronics Corp (UMC, 聯電) shares soared 10 percent to close at NT$27.5 as 380 million shares changed hands on the Taiwan Stock Exchange. UMC is the world’s No. 3 foundry by revenue, followed by SMIC, according to data from market researcher TrendForce Corp (集邦科技). UMC has product and customer portfolios similar to those of SMIC, TrendForce said, adding that UMC offers 14-nanometer and