European stock markets on Friday mostly rose as investors shrugged off a looming shutdown of the US government.
“Investors don’t appear particularly bothered about the prospect of a government shutdown, with the assumption being that one [bill] will eventually be signed and any economic impact will be minor or nonexistent,” Oanda Corp senior market analyst Craig Erlam said.
The US House of Representatives on Thursday approved a short-term spending bill to keep the government open after funding runs out, but the measure was dead in the Republican-controlled US Senate.
Leaders of both US political parties were pointing fingers at one another.
Fitch Ratings Inc said a shutdown in itself would not impact the US government’s top rating, but could further destabilize budget policymaking and lead to brinkmanship over raising the debt level before the US Treasury runs out of extraordinary measures to fund the government in March or April.
“Investors don’t really fear a shutdown, as they don’t foresee it happening, but it has cast enough doubt over the stock market to curtail buying momentum,” CMC Markets UK analyst David Madden said. “American stocks have enjoyed such a positive run lately, these concerns are the perfect excuse for profit-taking.”
Frankfurt’s DAX on Friday pushed 1.2 percent higher to 13,434.45, jumping 1.4 percent from 13,245.03 a week earlier.
London’s FTSE 100 managed to break a four-day losing streak, despite poor UK retail sales data, rising 29.83 points, or 0.4 percent, to 7,730.79. However, for the week it fell 0.6 percent from a close of 7,778.64 on Jan. 12.
British retail sales last month slid 1.5 percent from November last year after consumers had brought moved their Christmas shopping, official data showed.
IG Group PLC analyst Joshua Mahony said that the “disappointing set of retail sales figures should be put in the context of shifting shopping habits.”
Retail sales had already jumped 1 percent in November, boosted by Black Friday price reductions, the British Office for National Statistics said.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion