European stocks rose this week as reports showing a decline in US jobless claims and increases in consumer confidence and durable-goods orders spurred optimism that the world’s biggest economy is strengthening.
The STOXX 600 Europe Index advanced 3.5 percent to 241.86 this past week. The gauge has risen 13 percent from this year’s low on Sept. 22 as eurozone leaders attempted to stem the region’s debt woes. The measure has still fallen 12 percent this year as the fiscal crisis spread from Greece to Italy and Spain.
“It’s a relief to see stabilization in the US economy,” said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg.
“This stabilization allows us to focus less on the debt crisis in Europe. That’s favorable for the market, but it’s not time to become euphoric,” he added.
Fitch Ratings on Monday lowered France’s credit outlook and put the grades of nations including Spain and Italy on review for a downgrade, citing Europe’s failure to find a “comprehensive solution” to the debt crisis.
National benchmark indices rose in all of Europe’s 18 western markets, except Iceland. France’s CAC 40 Index surged 4.4 percent, the UK’s FTSE 100 Index gained 2.3 percent and Germany’s DAX increased 3.1 percent.
The volume of shares changing hands across Europe declined this week as the Christmas holiday approached. Trading on the STOXX 600 was 31 percent below the average for this year.
In Germany, business confidence increased this month, suggesting Europe’s largest economy is weathering the eurozone’s debt crisis. The sentiment gauge, based on a survey of 7,000 executives, rose to 107.2 from 106.6 last month, the Munich-based Ifo Institute said on Tuesday. The median economist forecast called for a drop to 106.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
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The National Stabilization Fund (NSF, 國安基金) is to continue supporting local shares, as uncertainties in international politics and the economy could affect Taiwanese industries’ global deployment and corporate profits, as well as affect stock movement and investor confidence, the Ministry of Finance said in a statement yesterday. The NT$500 billion (US$17.1 billion) fund would remain active in the stock market as the US’ tariff measures have not yet been fully finalized, which would drive international capital flows and global supply chain restructuring, the ministry said after the a meeting of the fund’s steering committee. Along with ongoing geopolitical risks and an unfavorable
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