European stocks posted their biggest weekly decline since November, as reports signaled that the economic rebound in the US has slowed, while the European Central Bank (ECB) said risks remain to the eurozone’s recovery.
Vodafone Group PLC lost 2.1 percent after Verizon Communications Inc denied that it has considered buying the mobile-phone operator. Kazakhmys PLC and Evraz PLC slumped more than 7 percent this week, leading a gauge of mining stocks to its longest streak of losses in 13 years.
The STOXX Europe 600 Index fell 2.3 percent in the four-day week following the Easter holiday, completing its longest stretch of losses in more than 10 months. The slump pared the gauge’s advance so far this year to 2.7 percent. The STOXX 600 had gained as much as 6.7 percent amid speculation that central banks would continue to provide monetary stimulus.
“Markets are going to be vulnerable to bad news from the States,” Philip Saunders, who helps oversee about US$105 billion at Investec Asset Management in London, told Francine Lacqua on Bloomberg Television.
“Growth, or the lack of it in Europe, is the big issue. We’re in a depression and that’s not going to go away. The Japanese authorities have finally gotten round to dealing with it after 20 years. Let’s hope it doesn’t take that long in Europe,” he said.
Bank of Japan Governor Haruhiko Kuroda increased the lender’s monthly bond purchases to ￥7 trillion (US$72 billion) on Thursday. The central bank would double its monetary base within two years, according to a statement issued after Kuroda’s first meeting in charge of the institution.
National benchmark indexes still fell in all 18 Western European markets this week. The UK’s FTSE 100 dropped 2.5 percent, while France’s CAC 40 and Germany’s DAX retreated 1.8 percent. The stock market in Cyprus declined 2.5 percent after opening for the first time since March 15.
European stocks extended losses on Friday as a US Department of Labor report showed the US economy created fewer jobs last month than economists’ had forecast. Payrolls grew by 88,000 workers last month, their smallest increase in nine months. The median economist estimate in a Bloomberg survey had called for net hiring to climb by 190,000.
In Europe, ECB President Mario Draghi said that risks remain to the economic recovery in the second half of this year. The ECB left its benchmark interest rate at a record low of 0.75 percent on Thursday, matching most economist estimates.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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