European stocks climbed with Germany’s DAX Index after a report showed the nation’s economy accelerated.
The STOXX Europe 600 Index added 0.6 percent to 377.07 at the close of trading, paring gains of as much as 0.8 percent. It extended a seven-year high as Greek and EU leaders signaled willingness to compromise on bailout terms. The measure has gained 1.1 percent this week for a second straight advance.
The DAX climbed as much as 0.9 percent to 11,013.85 in intraday trading, rising above 11,000 for the first time, before closing 0.4 percent up. The benchmark gauge is up 12 percent this year, making Germany among the best performers in 24 developed markets tracked by Bloomberg. German GDP surged 0.7 percent in the fourth quarter, a faster pace than the previous three months, data showed. The euro region’s economy also gathered momentum.
“Markets are being driven by evidence that the European economy is recovering,” said Dirk Thiels, head of investment management at KBC Asset Management NV in Brussels. “Today’s German GDP figures were quite encouraging. The hard data is finally giving us some relief and investors will be pretty happy that the core of Europe is holding up. The market is back to an optimistic view on Greece.”
The STOXX 600 rose on Friday as optimism grew that a cease- fire agreement will help stem conflict in Ukraine, and that Greece will reach a deal. The benchmark gauge has jumped 10 percent this year as the European Central Bank (ECB) unveiled a 1.1 trillion euro (US$1.2 trillion) asset-purchase plan. Stocks have widened a gap with the euro on speculation the ECB’s policies will help boost economic growth and corporate profits.
Greece’s ASE Index rallied 5.6 percent for the best performance among 18 western European markets. National Bank of Greece SA and Eurobank Ergasias SA jumped, pushing their weekly gains up at least 35 percent. Benchmark measures in Spain and Portugal advanced more than 1.6 percent.
Greek Prime Minister Alexis Tsipras on Friday said that political will exists in the eurozone for a deal.
His government is seeking a six-month bridge agreement with creditors after its current aid program expires this month.
German Chancellor Angela Merkel said her first meeting with Tsipras was friendly. Greece’s finance minister met experts from the country’s international creditors in Brussels yesterday.
Among stocks that moved on corporate news, Anglo American PLC gained 3.4 percent after posting full-year earnings that beat analysts’ projections and writing down assets. GlaxoSmithKline PLC rose 4.5 percent as UBS Group AG raised its recommendation on the drugmaker to buy from sell.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it 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
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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