European stocks advanced in the past week, rebounding from the previous week’s selloff, as a drop in the cost of borrowing between lenders and higher metal prices sparked a rally in banks and mining companies.
Deutsche Bank AG and Unicredit SpA rose more than 14 percent as the London interbank offered rate, or LIBOR, had its biggest weekly drop this year. Bank of Ireland PLC soared 44 percent after the Dublin-based lender announced plans to buy back debt to boost capital. Vedanta Resources PLC, Lonmin PLC and Anglo American PLC jumped more than 10 percent.
The Dow Jones STOXX 600 Index gained 2 percent to 207.01 last week.
The measure has jumped 31 percent since March 9 on speculation the worst of the recession is over and the recovery is likely to continue, according to Goldman Sachs Group Inc strategists.
“Banks again this week got a boost every time the words ‘green shoots’ were mentioned,” said David Morrison, a London-based market strategist at GFT. “Miners also got a lift from hopes that recovery is around the corner.”
A Merrill Lynch & Co survey this week showed investors continued to pile back into equities this month as optimism on economic growth and corporate earnings surged to the highest levels in at least four years.
National benchmark indexes rose in all 18 western European markets. France’s CAC 40 added 1.9 percent, while Germany’s DAX increased 3.8 percent. The UK’s FTSE 100 gained 0.4 percent. UK gains were limited after Standard & Poor’s rating service downgraded the country’s credit outlook.
The VSTOXX Index, which gauges the cost of insurance against declines on the Dow Jones Euro STOXX 50 Index, closed on Wednesday at its lowest since Lehman Brothers Holdings Inc filed for bankruptcy in September. The measure ended 2 percent lower on the week.
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
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
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft