European stocks climbed for a second week as results of the US government’s bank stress tests fueled speculation the worst of the credit crisis has passed amid signs the global economy is stabilizing.
BNP Paribas SA, France’s largest bank, and UBS AG rallied more than 7 percent after US Federal Reserve Chairman Ben Bernanke said the outcome of the review “should provide considerable comfort.”
Danske Bank A/S and Swiss Reinsurance Co soared more than 30 percent after reporting better-than-estimated earnings. Kazakhmys PLC, Kazakhstan’s biggest copper producer, and BP PLC rose with higher metal and oil prices.
The Dow Jones STOXX 600 Index added 4.6 percent to a four-month high of 209.51. The measure has surged 33 percent since March 9, erasing its decline for this year, as earnings at companies from Credit Suisse Group AG to BASF SE beat projections and reports signaled the global recession is easing.
“We’ve seen a good recovery since March,” said Daniel Knuchel, chief investment officer at ATAG Asset Management in Zurich, which oversees about US$3 billion. “Better-than-expected economic data and the results of the stress tests have reassured the markets this week. The positive news will have to last for the rally to continue or we may see a consolidation soon.”
US government figures showed employers cut fewer jobs last month than economists forecast, while other reports signaled improvements in US home sales, manufacturing in China and German exports.
National indexes rose in all 18 western European markets. Germany’s DAX Index climbed 3 percent, while France’s CAC 40 added 4.8 percent. The UK’s FTSE 100, which was closed for a holiday May 4, advanced 5.2 percent.
The European Central Bank cut its key interest rate to a record low of 1 percent, while the Bank of England held its benchmark rate at 0.5 percent and boosted the size of its asset purchase program by £50 billion (US$76 billion) to £125 billion.
A measure of banks in the STOXX 600 climbed 10 percent to the highest level since November.
BNP Paribas, which said this week its capital level is “perfectly adequate,” jumped 14 percent. UBS climbed 7.2 percent after the European bank with the biggest writedowns from the financial crisis reported a narrower first-quarter loss and increased capital.
Royal Bank of Scotland Group PLC rose 7.7 percent as Britain’s largest government-owned bank reported higher first-quarter revenue on “exceptional” growth at its global banking and market securities unit and income from its rates business.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
BULLY TACTICS: Beijing has continued its incursions into Taiwan’s airspace even as Xi Jinping talked about Taiwan being part of the Chinese family and nation China should stop its coercion of Taiwan and respect mainstream public opinion in Taiwan about sovereignty if its expression of goodwill is genuine, the Ministry of Foreign Affairs (MOFA) said yesterday. Ministry spokesman Jeff Liu (劉永健) made the comment in response to media queries about a meeting between former president Ma Ying-jeou (馬英九) and Chinese President Xi Jinping (習近平) the previous day. Ma voiced support for the so-called “1992 consensus,” while Xi said that although the two sides of the Taiwan Strait have “different systems,” this does not change the fact that they are “part of the same country,” and that “external
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source