European stocks fell for a second week as disappointing economic data from China and the US fanned concern that the global recovery is faltering.
Stocks sensitive to economic growth including basic-resources and construction shares sank. Dana Petroleum PLC jumped 22 percent after the Scottish oil explorer said it received a takeover approach. BP PLC rallied for the first week since its Macondo well started spewing oil into the Gulf of Mexico in April.
The STOXX Europe 600 Index lost 4.5 percent this week, the biggest drop for six weeks, as all 19 industry groups dropped.
The gauge has declined 13 percent from this year’s high on April 15 amid concern about the impact of Europe’s sovereign debt crisis on the world economy.
“Leading indicators are rolling over and turning less positive,” a team of strategists at Citigroup Inc in London, led by Adrian Cattley, wrote in a note. “Weaker macro has driven risk assets lower and the second quarter was one of the worst for equities compared with bonds in the last 20 years.”
National benchmark indices fell in all 18 western European markets. Germany’s DAX lost 3.9 percent and France’s CAC 40 slid 4.9 percent, while the UK’s FTSE 100 retreated 4.1 percent.
Mining companies pared some of their losses after new Australian Prime Minister Julia Gillard scaled back a proposed tax on the industry.
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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