European stocks on Friday closed little changed, paring earlier losses, as banks rallied and French shares climbed after polls showed anti-eurozone candidate Marine Le Pen lagging rival Emmanuel Macron for the first time.
The STOXX Europe 600 dropped 0.1 percent to close at 375.23, after earlier sliding as much as 0.5 percent, but finished the week up 1.4 percent from its close of 370.01 on Feb. 24.
France’s CAC 40 Index climbed 0.6 percent to close at 4,995.13, its highest level since August 2015. That compared with its close of 4,845.24 on Feb. 24, a weekly increase of 4 percent.
US INTEREST RATE HIKE
Investors were also awaiting a speech by US Federal Reserve Chair Janet Yellen after European markets closed, following hawkish comments by her colleagues earlier this week that boosted bets for an interest rate hike this month.
Banks have been the biggest beneficiaries of that speculation, leading gains among industry groups and helping send the STOXX 600 to its best weekly advance this year.
“The US remains the key driver of markets right now. Such has been the turnaround in expectations, that a rate move looks more or less a done deal,” CMC Markets London-based market analyst Michael Hewson wrote in a note.
Traders are pricing in a 92 percent chance of a rate increase when the Fed announces its decision on March 15, up from 40 percent just a week ago, Fed fund futures showed.
SLUMPING STOCKS
Among shares active on corporate news, Berendsen PLC slumped 11 percent after the provider of industrial laundry services forecast operating profit for this year would be below estimates.
WPP PLC dropped 8 percent, dragging media shares to the worst performance in the STOXX 600, after it projected slower growth and weaker new business.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
The demise of the coal industry left the US’ Appalachian region in tatters, with lost jobs, spoiled water and countless kilometers of abandoned underground mines. Now entrepreneurs are eyeing the rural region with ambitious visions to rebuild its economy by converting old mines into solar power systems and data centers that could help fuel the increasing power demands of the artificial intelligence (AI) boom. One such project is underway by a non-profit team calling itself Energy DELTA (Discovery, Education, Learning and Technology Accelerator) Lab, which is looking to develop energy sources on about 26,305 hectares of old coal land in
Netflix on Friday faced fierce criticism over its blockbuster deal to acquire Warner Bros Discovery. The streaming giant is already viewed as a pariah in some Hollywood circles, largely due to its reluctance to release content in theaters and its disruption of traditional industry practices. As Netflix emerged as the likely winning bidder for Warner Bros — the studio behind Casablanca, the Harry Potter movies and Friends — Hollywood’s elite launched an aggressive campaign against the acquisition. Titanic director James Cameron called the buyout a “disaster,” while a group of prominent producers are lobbying US Congress to oppose the deal,
RSS