European stocks surged this week by the most in a year as concern about the economic recovery faded and investors speculated that the selloff in equities since April has overshot the outlook for earnings.
BP PLC jumped 13 percent amid speculation funds in the Middle East may invest in the energy company as it works to contain the worst oil spill in US history.
The STOXX Europe 600 Index rallied 5.4 percent this week, the biggest gain since July last year, after the IMF raised its global growth forecast and lower-than-estimated US jobless claims boosted optimism that the economy will avoid slipping bank into recession. All 19 industry groups on the benchmark gauge climbed.
“We could see the market push on quite a bit further,” said London-based Justin Urquhart Stewart, who helps oversee about US$3.3 billion at 7 Investment Management.
The STOXX 600 has still declined 8.1 percent from this year’s high on April 15 amid concern about the impact of Europe’s sovereign debt crisis on the world economy. The retreat has pushed the index’s valuation to about 11.5 times estimated earnings, near the lowest level in more than a year, according to Bloomberg data.
National benchmark indexes rose in all 18 western European markets as the European Central Bank and the Bank of England both maintained interest rates at record lows. Germany’s DAX gained 5 percent and France’s CAC 40 increased 6.2 percent. The UK’s FTSE 100 advanced 6.1 percent, while Spain’s IBEX 35 surged 9.5 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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