European stocks rose for a third week as optimism grew that the worst of the global recession is over after reports showed the US economy lost fewer jobs than expected and Chinese manufacturing expanded for a third month last month.
Rio Tinto Group, the world’s third-largest mining company, gained 7.2 percent after raising US$21 billion from a share sale and an iron ore venture with BHP Billiton Ltd.
Renault SA and PSA Peugeot Citroen led a rally among automakers after French car sales advanced 12 percent last month as a government-backed bonus program enticed consumers.
Europe’s Dow Jones STOXX 600 Index rose 1.2 percent to 210.76 this past week, having risen for all but one of the last six weeks. The measure has gained 33 percent from a 12-year low on March 9 amid optimism that government action will help end the first global recession since World War II.
“The market is resuming its gains in a healthy manner, driven by improvements in the economy,” said Bruno Ducros, a fund manager at Cardif Asset Management in Paris, which oversees about US$2.6 billion in stocks. “Rio Tinto found a way to finance itself and that’s good.”
National benchmark indexes rose in 15 of the 18 western European markets. The UK’s FTSE 100 rose 0.5 percent, while Germany’s DAX gained 2.8 percent and France’s CAC 40 increased 1.9 percent.
UBS AG strategists reversed their preference for US stocks over European equities for the first time since 2007, saying US stocks look relatively expensive as the earnings gap between the two regions narrows. The brokerage raised its recommendation on European stocks to “overweight” and reduced US shares to “underweight.”
The European Central Bank and the Bank of England maintained their benchmark interest rates at record lows this past week.
European Central Bank President Jean-Claude Trichet said the bank had no immediate plans to boost its 60 billion euro (US$84 billion) asset-purchase program or cut interest rates further as the economy shows signs of recovery.
NYSE Euronext CEO Duncan Niederauer said he was “a lot more confident” the three-month rally in equities would be sustainable as trading volume increased.
“At the end of March I was apprehensive because I thought the market had gone up so much so quickly that it didn’t feel like a fundamentally driven rally to me,” Niederauer said in an interview in Amsterdam on Wednesday.
“I was nervous that the fundamentals hadn’t really changed and we hadn’t seen enough volume,” he said.
DEFENSE: The first set of three NASAMS that were previously purchased is expected to be delivered by the end of this year and deployed near the capital, sources said Taiwan plans to procure 28 more sets of M-142 High Mobility Artillery Rocket Systems (HIMARS), as well as nine additional sets of National Advanced Surface-to-Air Missile Systems (NASAMS), military sources said yesterday. Taiwan had previously purchased 29 HIMARS launchers from the US and received the first 11 last year. Once the planned purchases are completed and delivered, Taiwan would have 57 sets of HIMARS. The army has also increased the number of MGM-140 Army Tactical Missile Systems (ATACMS) purchased from 64 to 84, the sources added. Each HIMARS launch pod can carry six Guided Multiple Launch Rocket Systems, capable of
Authorities have detained three former Taiwan Semiconductor Manufacturing Co (TMSC, 台積電) employees on suspicion of compromising classified technology used in making 2-nanometer chips, the Taiwan High Prosecutors’ Office said yesterday. Prosecutors are holding a former TSMC engineer surnamed Chen (陳) and two recently sacked TSMC engineers, including one person surnamed Wu (吳) in detention with restricted communication, following an investigation launched on July 25, a statement said. The announcement came a day after Nikkei Asia reported on the technology theft in an exclusive story, saying TSMC had fired two workers for contravening data rules on advanced chipmaking technology. Two-nanometer wafers are the most
TRAJECTORY: The severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday, and would influence the nation to varying degrees, a forecaster said The Central Weather Administration (CWA) yesterday said it would likely issue a sea warning for Tropical Storm Podul tomorrow morning and a land warning that evening at the earliest. CWA forecaster Lin Ting-yi (林定宜) said the severe tropical storm is predicted to be closest to Taiwan on Wednesday and Thursday. As of 2pm yesterday, the storm was moving west at 21kph and packing sustained winds of 108kph and gusts of up to 136.8kph, the CWA said. Lin said that the tropical storm was about 1,710km east of Oluanpi (鵝鑾鼻), Taiwan’s southernmost tip, with two possible trajectories over the next one
CHINA’s BULLYING: The former British prime minister said that he believes ‘Taiwan can and will’ protect its freedom and democracy, as its people are lovers of liberty Former British prime minister Boris Johnson yesterday said Western nations should have the courage to stand with and deepen their economic partnerships with Taiwan in the face of China’s intensified pressure. He made the remarks at the ninth Ketagalan Forum: 2025 Indo-Pacific Security Dialogue hosted by the Ministry of Foreign Affairs and the Prospect Foundation in Taipei. Johnson, who is visiting Taiwan for the first time, said he had seen Taiwan’s coastline on a screen on his indoor bicycle, but wanted to learn more about the nation, including its artificial intelligence (AI) development, the key technology of the 21st century. Calling himself an
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