European stocks rose for a fourth week as concern about the region’s sovereign debt crisis waned.
Royal Bank of Scotland Group PLC and Societe Generale SA led a rally among bank shares. British Sky Broadcasting PLC soared 19 percent after Rupert Murdoch’s News Corp offered to buy the rest of the company for £7.8 billion (US$11.5 billion). Nokia Oyj slumped 8.6 percent after cutting its forecasts. BP PLC tumbled for a record ninth week.
The STOXX Europe 600 Index gained 2.4 percent to 255.5, the highest closing level since May 13 and the longest streak of weekly gains since April. The benchmark gauge has rebounded 10 percent from its low for this year on May 25 after concern about levels of government debt in Europe pushed the index to its cheapest level relative to earnings in more than a year.
“Global investors are feeling more hopeful about the outlook for Europe’s stocks,” said Gary Baker, an equity strategist at BofA Merrill Lynch Global Research in London. “Bad news is priced in.”
A Spanish bond auction on Thursday eased concern that the nation will struggle to finance looming debt maturities. Spain sold 3.5 billion euros (US$4.3 billion) of 10-year and 30-year bonds, the maximum set for the auction.
Britain posted a smaller fiscal deficit last month than economists forecast as growth lifted tax receipts, providing a boost for British Chancellor of the Exchequer George Osborne before he announces his budget on Tuesday.
EU leaders agreed on Thursday to disclose how banks perform on stress tests, seeking to show investors that the financial system can withstand shocks. The decision came after Spanish officials unexpectedly pledged to publish results on individual banks, the first European government to do so. European Central Bank President Jean-Claude Trichet said broader regional stress tests will be published in the second half of next month “at the latest.”
Still, the number of investors forecasting the global economy to strengthen in the next 12 months fell, according to a BofA Merrill Lynch survey of portfolio managers who together manage about US$606 billion. Money managers increased their reserves of cash this month to the highest level in more than a year and continued to reduce their holdings in global equities to levels not seen since early last year, the survey showed.
DEFENDING DEMOCRACY: Taiwan shares the same values as those that fought in WWII, and nations must unite to halt the expansion of a new authoritarian bloc, Lai said The government yesterday held a commemoration ceremony for Victory in Europe (V-E) Day, joining the rest of the world for the first time to mark the anniversary of the end of World War II in Europe. Taiwan honoring V-E Day signifies “our growing connections with the international community,” President William Lai (賴清德) said at a reception in Taipei on the 80th anniversary of V-E Day. One of the major lessons of World War II is that “authoritarianism and aggression lead only to slaughter, tragedy and greater inequality,” Lai said. Even more importantly, the war also taught people that “those who cherish peace cannot
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
The Philippines yesterday criticized a “high-risk” maneuver by a Chinese vessel near the disputed Scarborough Shoal (Huangyan Island, 黃岩島) in a rare incident involving warships from the two navies. The Scarborough Shoal — a triangular chain of reefs and rocks in the contested South China Sea — has been a flash point between the countries since China seized it from the Philippines in 2012. Taiwan also claims the shoal. Monday’s encounter took place approximately 11.8 nautical miles (22km) southeast” of the Scarborough Shoal, the Philippine military said, during ongoing US-Philippine military exercises that Beijing has criticized as destabilizing. “The Chinese frigate BN 554 was
LEISURE: The new law adds Confucius’ birthday, the anniversary of the Battle of Guningtou, Constitution Day and Little New Year as national holidays The Legislative Yuan yesterday passed new legislation adding four national holidays and making Workers’ Day a national holiday for all sectors. The Chinese Nationalist Party (KMT) and the Taiwan People’s Party used their combined majority in the legislature to push the jointly proposed draft through its third and final reading. This new law supersedes the existing regulations for the implementation of memorial days and state holidays, which are administered by the Ministry of the Interior. The new law recognizes Confucius’ birthday on Sept. 28, the anniversary of the Battle of Guningtou on Oct. 25, Constitution Day on Dec. 25 and “Little New Year,”