Carmakers and real-estate companies led European stocks higher on Friday, paring their first weekly decline in three.
Auto-related shares rose the most among 19 industry groups, with Porsche SE climbing 2.4 percent after its board members were said to be cleared in a probe over a failed attempt to take over Volkswagen AG. French shopping-mall operator Klepierre SA added 2.5 percent. Commodity stocks retreated, with Glencore PLC falling 1 percent.
The STOXX Europe 600 Index advanced 0.4 percent to 388.12 at 8:32am in London, heading for a weekly drop of 2.3 percent.
The gauge posted its biggest two-day loss of the year earlier this week after China devalued its currency, before rebounding 1 percent yesterday. It has retreated 6.3 percent since an April record. The yuan stabilized on Friday after China’s central bank raised its reference rate and said it will intervene to prevent excessive swings.
In European news, Greek lawmakers approved a third bailout package in Athens, a vote tally showed.
Separately, data showed Germany’s economy grew at a slower-than-forecast pace in the second quarter, while France’s stagnated, compared with economists’ projections for 0.2 percent growth.
Among stocks moving on corporate news, Swiss Life Holding AG climbed 1.5 percent after posting first-half net income that beat estimates. Schindler Holding AG rose 0.9 percent after posting an increase in first-half profit.
Energy shares fell.
BP PLC declined 0.9 percent as it faces penalties after a US judge concluded that the energy producer manipulated markets in Texas in 2008.
RESTRUCTURING: Taichung and Taoyuan profited most from local firms moving back high-end manufacturing amid the US-China decoupling of trade ties, the ministry said The government’s “Invest in Taiwan” initiative might this year see NT$627.1 billion (US$21.7 billion) of investment pledges realized, with several firms raising stakes and two dropouts due to customer losses, Minister of Economic Affairs (MOEA) Wang Mei-hua (王美花) said yesterday. Wang made the statement at the monthly meeting of the Third Wednesday Club, a local trade group featuring the top 100 firms of each business sector. Since early last year, the government has launched three programs intended to help local companies grapple with US-China trade rows and the COVID-19 pandemic, mainly through moving production lines back to Taiwan. Thus far, the ministry
JOBS AT RISK? Most Cathay Dragon routes are to be operated by Cathay Pacific or a subsidiary, but it was unclear how Taiwanese workers would be affected Cathay Pacific Airways Ltd (國泰航空) yesterday said it is planning new flight services for Taiwan as it announced a corporate restructuring that included the shutdown of its regional subsidiary, Cathay Dragon (國泰港龍), and could lead to job cuts in Taiwan. Cathay Pacific said the shutdown means that the one round-trip service between Taichung and Hong Kong per day and seven round-trip services between Kaohsiung and Hong Kong operated by Cathay Dragon prior to the COVID-19 pandemic would be terminated. “The parent company is planning a new schedule between Taiwan and Hong Kong,” Cathay Pacific assistant manager for corporate communications Moses Hou (侯恩錫)
OVERHEATED MARKET?: The gauge would be designed to provide more reliable information than private-sector data, and help improve policymaking, the council said The National Development Council (NDC) is considering creating a business climate index on Taiwan’s property market, allowing policymakers to better monitor market movements and intervene if necessary, NDC Minister Kung Ming-hsin (龔明鑫) said yesterday. Kung made the remarks at a meeting of the legislature’s Economic Committee where lawmakers from across party lines voiced concerns about housing price hikes driven by capital repatriation. Kung said that the council is assessing the possibility of creating an index designed to provide more accountable and transparent information than data provided by private-sector market analysts, and could help improve policymaking. The council would compile a report on
STOCK MARKETS TAIEX closes slightly higher The TAIEX closed slightly higher yesterday as market sentiment remained cautious over the Nov. 3 US presidential election. Contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was again the anchor stabilizing the broader market, preventing the main board from falling into negative territory at the end of the session, dealers said. The TAIEX closed up 14.88 points, or 0.12 percent, at 12,877.25, on turnover of NT$167.982 billion (US$5.81 billion). TSMC, the most heavily weighted stock on the local market, rose 0.44 percent after fluctuating between NT$451 and NT$456. The semiconductor subindex and the bellwether electronics sector