European shares ended flat on Friday as surging COVID-19 cases compounded fears of the damage to the bloc’s economy in the coming winter months, although the benchmark index clocked its second straight week of gains.
The pan-European STOXX 600 edged 0.01 percent higher after jumping earlier this week on optimism about a working COVID-19 vaccine.
The index has gained 12.5 percent in the past two weeks, also buoyed by hopes of calmer global trade under US president-elect Joe Biden.
“Even if the greater likelihood of a vaccine has brightened prospects for next year, the near-term economic outlook is still very gloomy,” Capital Economics Ltd Europe economist Jessica Hinds said.
“Much of the eurozone is yet again subject to substantial restrictions on daily life that are taking their toll on economic activity, particularly in parts of the services sector,” Hinds said.
German Minister of Health Jens Spahn said it was too early to say whether restrictions imposed last week would need to be extended beyond this month, while French Prime Minister Jean Castex said there would be no easing for at least two weeks.
German shares rose 0.2 percent, while France’s CAC 40 index gained 0.3 percent after having risen to an eight-month high earlier this week.
Despite rallying more than 40 percent since a coronavirus-driven crash in March, the STOXX 600 is down about 7 percent this year on concerns that the second round of lockdowns would threaten a nascent economic recovery.
The S&P 500, in contrast, has risen 9.5 percent so far this year.
With the eurozone likely heading back into recession this quarter, the European Central Bank has already said it would provide more stimulus next month.
European banking stocks outperformed major sectors surged 16.5 percent this week, while travel stocks, which have lost 25 percent of their value so far this year, ended their second week higher.
Technology stocks, which have tracked a surge in their US peers as investors gravitate toward sectors that have seen higher demand in this year’s stay-at-home environment, gained 0.3 percent on Friday.
French power group EDF SA gained 0.4 percent as it showed signs of improving performance in the third quarter, while German property group Deutsche Wohnen AG fell 1 percent after its third-quarter earnings update.
Overall, quarterly results for STOXX 600 companies have been better than expected, with 68 percent of the firms that have reported results so far beating analysts’ earnings estimates, according to Refinitiv data.
SEMICONDUCTORS: The German laser and plasma generator company will expand its local services as its specialized offerings support Taiwan’s semiconductor industries Trumpf SE + Co KG, a global leader in supplying laser technology and plasma generators used in chip production, is expanding its investments in Taiwan in an effort to deeply integrate into the global semiconductor supply chain in the pursuit of growth. The company, headquartered in Ditzingen, Germany, has invested significantly in a newly inaugurated regional technical center for plasma generators in Taoyuan, its latest expansion in Taiwan after being engaged in various industries for more than 25 years. The center, the first of its kind Trumpf built outside Germany, aims to serve customers from Taiwan, Japan, Southeast Asia and South Korea,
Gasoline and diesel prices at domestic fuel stations are to fall NT$0.2 per liter this week, down for a second consecutive week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to drop to NT$26.4, NT$27.9 and NT$29.9 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to fall to NT$24.8 per liter at CPC stations and NT$24.6 at Formosa pumps, they said. The price adjustments came even as international crude oil prices rose last week, as traders
SIZE MATTERS: TSMC started phasing out 8-inch wafer production last year, while Samsung is more aggressively retiring 8-inch capacity, TrendForce said Chipmakers are expected to raise prices of 8-inch wafers by up to 20 percent this year on concern over supply constraints as major contract chipmakers Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Samsung Electronics Co gradually retire less advanced wafer capacity, TrendForce Corp (集邦科技) said yesterday. It is the first significant across-the-board price hike since a global semiconductor correction in 2023, the Taipei-based market researcher said in a report. Global 8-inch wafer capacity slid 0.3 percent year-on-year last year, although 8-inch wafer prices still hovered at relatively stable levels throughout the year, TrendForce said. The downward trend is expected to continue this year,
POWERING UP: PSUs for AI servers made up about 50% of Delta’s total server PSU revenue during the first three quarters of last year, the company said Power supply and electronic components maker Delta Electronics Inc (台達電) reported record-high revenue of NT$161.61 billion (US$5.11 billion) for last quarter and said it remains positive about this quarter. Last quarter’s figure was up 7.6 percent from the previous quarter and 41.51 percent higher than a year earlier, and largely in line with Yuanta Securities Investment Consulting Co’s (元大投顧) forecast of NT$160 billion. Delta’s annual revenue last year rose 31.76 percent year-on-year to NT$554.89 billion, also a record high for the company. Its strong performance reflected continued demand for high-performance power solutions and advanced liquid-cooling products used in artificial intelligence (AI) data centers,
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