European stocks were little changed, posting their best monthly advance since February, even as a slump in energy companies offset a gain in travel shares.
The STOXX Europe 600 Index slipped 0.1 percent to 347.25 at the close on Friday, paring losses of as much as 0.6 percent in the final half hour of trading.
A gauge of oil and gas companies fell 3.5 percent, capping its worst week since August 2011, as Brent and West Texas Intermediate headed for their biggest weekly drops since 2011. Air France-KLM Group rose 6.4 percent, leading an index of travel shares to its highest level in more than seven years on expectations that lower fuel costs would boost profitability.
“OPEC’s decision yesterday [Thursday] came as a surprise when looking at the market reaction, and made investors more cautious,” said Tobias Britsch, who helps oversee about US$30 billion at Meriten Investment Management GmbH, in Dusseldorf, Germany. “This could hurt a year-end rally. I would not touch oil and gas stocks as it’s far too risky now.”
Europe’s equity benchmark gained 3.1 percent this month, as European Central Bank (ECB) President Mario Draghi said the bank might broaden its asset-buying program to include the purchase of government bonds, while central banks in Japan and China stepped up measures to support their economies.
The STOXX 600 is 0.7 percent off its June peak, which was the highest level since January 2008. Germany’s DAX rose 0.1 percent on Friday, its 12th straight gain and longest winning streak since May last year. National benchmark gauges climbed in 10 of the 18 western European markets. The UK’s FTSE 100 slipped less than 0.1 percent, while France’s CAC 40 gained 0.2 percent.
Investors are also weighing the prospects for increased stimulus before the ECB meets next week to discuss monetary policy. Euro-area inflation slowed to 0.3 percent this month from a year earlier, according to EU data. The rate has been below 1 percent since September last year. The ECB has pledged more stimulus if needed to revive consumer prices.
“Lower energy prices could put some pressure on euro-area inflation and the ECB might need to go for full QE,” Britsch said, referring to quantitative easing.
A separate release showed unemployment in the region held at 11.5 percent last month.
Energy stocks extended a five-day decline to 9.4 percent after the 12-nation OPEC kept its output target unchanged on Thursday. Statoil ASA dropped 7.3 percent to its lowest price in 15 months, while Total SA slid 2 percent. BG Group PLC slipped 8.8 percent to its lowest price since March 2009.
The gauge of oil and gas firms on the STOXX 600 posted its third straight monthly drop, its longest losing streak in almost two years.
Travel and leisure stocks rose, extending a two-day advance to 3.3 percent. Deutsche Lufthansa AG gained 4.9 percent as UBS Group AG recommended buying the shares.
Aurubis AG dropped 3.2 percent after Goldman Sachs Group Inc cut its rating on Europe’s biggest producer of refined copper to neutral from buy. Ingenico Group rose 3.1 percent after Morgan Stanley upgraded its recommendation on the French maker of payment terminals.
Intel Corp chief executive officer Lip-Bu Tan (陳立武) is expected to meet with Taiwanese suppliers next month in conjunction with the opening of the Computex Taipei trade show, supply chain sources said on Monday. The visit, the first for Tan to Taiwan since assuming his new post last month, would be aimed at enhancing Intel’s ties with suppliers in Taiwan as he attempts to help turn around the struggling US chipmaker, the sources said. Tan is to hold a banquet to celebrate Intel’s 40-year presence in Taiwan before Computex opens on May 20 and invite dozens of Taiwanese suppliers to exchange views
Application-specific integrated circuit designer Faraday Technology Corp (智原) yesterday said that although revenue this quarter would decline 30 percent from last quarter, it retained its full-year forecast of revenue growth of 100 percent. The company attributed the quarterly drop to a slowdown in customers’ production of chips using Faraday’s advanced packaging technology. The company is still confident about its revenue growth this year, given its strong “design-win” — or the projects it won to help customers design their chips, Faraday president Steve Wang (王國雍) told an online earnings conference. “The design-win this year is better than we expected. We believe we will win
Chizuko Kimura has become the first female sushi chef in the world to win a Michelin star, fulfilling a promise she made to her dying husband to continue his legacy. The 54-year-old Japanese chef regained the Michelin star her late husband, Shunei Kimura, won three years ago for their Sushi Shunei restaurant in Paris. For Shunei Kimura, the star was a dream come true. However, the joy was short-lived. He died from cancer just three months later in June 2022. He was 65. The following year, the restaurant in the heart of Montmartre lost its star rating. Chizuko Kimura insisted that the new star is still down
While China’s leaders use their economic and political might to fight US President Donald Trump’s trade war “to the end,” its army of social media soldiers are embarking on a more humorous campaign online. Trump’s tariff blitz has seen Washington and Beijing impose eye-watering duties on imports from the other, fanning a standoff between the economic superpowers that has sparked global recession fears and sent markets into a tailspin. Trump says his policy is a response to years of being “ripped off” by other countries and aims to bring manufacturing to the US, forcing companies to employ US workers. However, China’s online warriors
RSS