European stocks were little changed this week as uncertainty in Cyprus and a political deadlock in Italy overshadowed better-than-estimated US and German economic data.
The STOXX Europe 600 Index fell 0.1 percent in a four-day week before the Easter holiday, after declining the most in four months the previous week. The gauge has still advanced 5 percent this quarter and traded to its highest level since June 2008, bolstered by US economic reports and monetary stimulus from central banks.
The benchmark Standard & Poor’s 500 Index climbed above its record closing level set in October 2007. Durable-goods orders rose last month by the most in five months while the S&P/Case-Shiller Index of property values in 20 cities showed its biggest year-over-year increase since June 2006.
In Europe, German retail sales unexpectedly climbed last month, rising 0.4 percent. That followed a revised 3 percent in January and compared with the median economist forecast for 0.6 percent.
National benchmark indexes still fell in 14 of the 18 western European markets. The UK’s FTSE 100 rose 0.3 percent, while France’s CAC 40 and Germany’s DAX slipped 1 percent and 1.5 percent respectively. Italy’s FTSE MIB Index dropped 4.4 percent, while Greece’s ASE Index lost 6.6 percent and the stock market in Cyprus remained closed for a second week.
Cyprus this week obtained a 10 billion euro international bailout after the country agreed to shut down its second-largest lender and impose losses on uninsured deposits of more than 100,000 euros (US$130,000). The deal replaced a previous eurozone demand to impose a levy on all bank accounts.
Stocks and the euro sank earlier in the week after media reported that Dutch Minister of Finance Jeroen Dijsselbloem, who leads the Euro Group of the bloc’s 17 finance ministers, said the Cyprus bailout should be viewed as a template for solving banking problems in the region. Shares pared losses when Dijsselbloem later clarified his remarks, saying that Cyprus is a “specific case with exceptional challenges.”
In Italy, bond yields surged after Democratic Party leader Pier Luigi Bersani ruled out creating a broad coalition following a failed meeting with rival politicians.
Bersani won a majority in the lower house of Italy’s parliament last month and needs additional support in the Italian Senate to form a government.
A gauge of eurozone banks declined 2.2 percent. Mediobanca SpA fell 11 percent in Milan, while Banco Popolare SC slid 8.5 percent. Societe Generale SA retreated 6.6 percent in Paris and Banco Bilbao Vizcaya Argentaria SA sank 7.3 percent in Madrid.
Portuguese lenders also slumped as Moody’s Investor Service affirmed the country’s junk debt rating with a negative outlook, saying the economy will likely undergo a later-than-expected contraction this year.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
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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