European stocks rallied during the first week of trading this year, with the Dow Jones STOXX 600 Index posting a 15-month high, amid signs economies are recovering from the worst global recession since World War II.
Rio Tinto Group led a measure of basic resource shares higher for a fourth week after Chinese manufacturing grew the most in five years last month. Allied Irish Banks PLC posted the largest surge in Europe after the Irish Finance Minister Brian Lenihan said the capitalization of the country’s banking system would be resolved by the end of the first quarter.
The STOXX 600 added 2.1 percent to 259.15 this week, a fourth straight weekly advance and the longest stretch of gains in five months. The regional benchmark has surged 64 percent since March, boosted by record-low interest rates in the US and Europe and about US$12 trillion of commitments from governments worldwide to revive credit markets and stimulate growth.
“Of all the asset classes, equities look the most attractive,” said Kevin Gardiner, the head of investment strategy at Barclays Wealth at a press briefing in London. His company oversees about US$215 billion. “Even though the economic recovery may be lackluster, the level of profits growth will underpin more gains in stocks.”
National benchmark indexes gained in all 18 western European markets. The UK’s FTSE 100 rose 2.2 percent and Germany’s DAX advanced 1.4 percent. France’s CAC 40 Index added 2.8 percent.
A measure of European manufacturing, based on a survey of purchasing managers in the 16-nation euro area, increased for a third month in December, Markit Economics said on Monday. A gauge of UK manufacturing from the Chartered Institute of Purchasing and Supply and Markit climbed to the highest level in 25 months.
“Markets are more looking for proper earnings and corporates’ ability to deal with the macro environment,” said Stefan Moeckel, a fund manager at WestLB Mellon Asset Management in Dusseldorf, Germany.
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
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
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