European stocks posted their steepest weekly drop since July as US reports on home sales and durable goods undermined speculation that the global economic recovery will be robust.
ArcelorMittal and Xstrata PLC led a retreat in basic-resources companies as metals prices fell in London. Liberty International PLC plunged 12 percent, sending a gauge of property-related shares down by the most in more than four months. Hennes & Mauritz AB pulled retailers lower after reporting a deterioration in sales.
The Dow Jones STOXX 600 Index lost 2.4 percent to 238.95 this week, as all 19 industry groups declined. A 51 percent rally since March 9 has pushed the regional gauge’s valuation to the highest level since June 2003, according to Bloomberg data.
“The market can’t go up every day and it’s come up significantly from its lows earlier this year,” said Andrea Williams, a London-based fund manager at Royal London Asset Management, which oversees about US$63 billion.
“The trouble is you get various numbers, one day it’s good and one day it’s bad,” Williams said.
Reports this week showed an unexpected 2.7 drop in sales of US existing homes last month, spurring concern the housing market is struggling to recover.
Stocks also retreated after the US Federal Reserve said it would reduce the size of its emergency programs meant to bolster credit markets, citing “continued improvements” in financial markets.
National benchmark indexes declined in all 18 western European markets except Greece. The UK’s FTSE 100 lost 1.8 percent and Germany’s DAX slid 2.1 percent. France’s CAC 40 retreated 2.3 percent.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
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