European stocks rose, led by Munich Re, as Morgan Stanley said it was optimistic about the reinsurer's business. Royal Philips Electronics NV and Infineon Technologies AG climbed after Dell Computer Corp said sales this quarter will exceed analysts' forecasts.
We're seeing earnings "stabilize and start to improve," said Gervais Williams, who manages PD800 million (US$1.29 billion) of stocks at Gartmore Investment Management in London. "The likelihood of surprising the market is increasing."
The Dow Jones Stoxx 50 Index advanced for the first day in three, adding 2.2 percent to 2,212.86. It has risen 1.9 percent this week, heading for its second positive week in six. The Stoxx 600 Index rose 2.9 percent, with insurers such as Axa SA and Prudential Plc leading percentage gains.
The Stoxx 50 and Stoxx 600 have shed more than 8 percent this year amid concern the threat of a US invasion Iraq has damaged consumer and business confidence in the economy, hurting companies' sales.
Benchmark indexes advanced in 15 of Western Europe's 17 markets. Germany's DAX Index climbed 4.7 percent, France's CAC 40 Index added 2.5 percent and the UK's FTSE 100 Index gained 0.03 percent. The Austrian Traded Index was unchanged, and Norway's OBX Index shed 0.3 percent.
March futures on the Dow Jones Euro Stoxx 50 Index of companies based in the 12 countries sharing the euro rose 3 percent to 2,184. Traders bought and sold 397,687 contracts. The index added 3.2 percent to 2,190.62.
Munich Re, the world's largest reinsurer, advanced 6.2 percent to 86.42 euros as Morgan Stanley called the stock's decline this year ``overdone.'' The value of Munich Re's stakes in Allianz AG and HVB Group alone should make the stock price 25 euros higher, said Rob Procter and Chris Hartwell, analysts at Morgan Stanley. Their share-price forecast is 144 euros.
Swiss Reinsurance Co, the world's No. 2 reinsurer, added 4.6 percent to SF80.05. Axa, Europe's second-biggest insurer, climbed 6.2 percent to 11.6 euros. Prudential Plc, the No. 2 in the UK, rose 5.8 percent to 415 pence.
Philips, which makes computer monitors for Dell, climbed 4.4 percent to 15.54 euros. Infineon, a producer of memory chips used in personal computers, added 4.5 percent to 5.80 euros.
STMicroelectronics NV, Europe's biggest semiconductor maker, advanced 2.9 percent to 16.1 euros.
ABN Amro Holding NV, the largest Dutch bank, added 5.7 percent to 14.85 euros. Martine Deroanne, an analyst at Fortis, raised her recommendation to "buy" from "accumulate." She cited the company's cost cuts and an improved outlook for its business in the Netherlands and the US.
The Dutch bank yesterday posted fourth-quarter profit of 685 million euros (US$740.3 million), exceeding the average estimate of 629 million euros from analysts in a Bloomberg News survey. ABN Amro is eliminating about 9 percent of its workforce, shutting branches at its consumer bank in the Netherlands and scaling back other parts of the business.
UBS AG, Switzerland's biggest bank, added 4.5 percent to 61.5 Swiss francs. The lender is due to report fourth-quarter earnings on Tuesday.
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
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An Indian factory producing iPhone components resumed work yesterday after a fire that halted production — the third blaze to disrupt Apple Inc’s local supply chain since the start of last year. Local industrial behemoth Tata Group’s plant in Tamil Nadu, which was shut down by the unexplained fire on Saturday, is a key linchpin of Apple’s nascent supply chain in the country. A spokesperson for subsidiary Tata Electronics Pvt yesterday said that the company would restart work in “many areas of the facility today.” “We’ve been working diligently since Saturday to support our team and to identify the cause of the fire,”
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