European stocks jumped from an eight-month low after US Federal Reserve Chair Janet Yellen said she was ready to raise interest rates this year, indicating that the recent market turmoil would not derail the US recovery.
Her comments helped clarify the Fed’s thinking, after the central bank’s decision to hold rates last week confused investors about the trajectory of US rates and increased stock volatility. Following a selloff on Thursday that wiped out its gains this year, the STOXX Europe 600 closed 2.8 percent higher on Friday.
All 19 industry groups rose at least 1 percent, and Germany’s DAX rebounded 2.8 percent from its lowest level since December. Italy’s FTSE MIB Index rallied the most among Western European markets, up 3.7 percent.
“It’s more of a relief rally supported by some clarity from Yellen,” said Carsten Hilck, a fund manager who oversees about US$6.6 billion at Union Investment in Frankfurt. “Markets will continue to be choppy, but they were clearly oversold in the past two days. Valuations started to get attractive. The DAX has been especially punished so we started buying German stocks yesterday.”
Europe’s benchmark gauge dropped 18 percent from a peak in April through Thursday, taking its valuation to 14.6 times estimated earnings, down from a multiple of 17.1 in July. Friday’s biggest advance in a month helped the STOXX 600 trim a second weekly decline. It was down 1.6 percent for the period as carmakers tumbled after Volkswagen AG said it cheated on US diesel-emission tests.
Volkswagen fell 3.8 percent, reversing an intraday advance of as much as 4.3 percent, after people familiar with the matter said executives in Germany controlled key aspects of the faked tests.
Other automakers clawed back losses on Friday, with BMW AG, Daimler AG and Renault SA rising 2.2 percent or more.
Some stocks moved on deal news. Quintain Estates & Development PLC jumped 7.6 percent after Lone Star Funds raised its offer for the housing developer and property investor. Sanofi added 3.1 percent as people familiar with the matter said the drugmaker might sell its biosurgery and renal units.
Synergy Health PLC soared 42 percent after a US judge denied a move by US officials to block the company’s takeover by Steris Corp, paving the way for a US$1.9 billion merger.
Adidas AG gained 4.1 percent after peer Nike Inc reported quarterly earnings that beat estimates. Zodiac Aerospace slid 6.8 percent after American Airlines Inc dropped the company as a supplier of seats on some of its planes, citing delivery delays.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
Popular vape brands such as Geek Bar might get more expensive in the US — if you can find them at all. Shipments of vapes from China to the US ground to a near halt last month from a year ago, official data showed, hit by US President Donald Trump’s tariffs and a crackdown on unauthorized e-cigarettes in the world’s biggest market for smoking alternatives. That includes Geek Bar, a brand of flavored vapes that is not authorized to sell in the US, but which had been widely available due to porous import controls. One retailer, who asked not to be named, because
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