European stocks fell on Friday, capping their third straight week in the red, as the basic resources sector was hit by declines in Anglo American PLC, but news that the UK was mulling easing travel restrictions boosted airlines and hotel groups.
Anglo American tumbled 8.1 percent after Morgan Stanley and UBS Group AG downgraded the stock.
The European mining index was also hit by worries about slowing growth in China, falling nearly 8 percent for the week.
The pan-European STOXX 600 fell 0.9 percent on the day, but fell 1 percent for the week.
London’s miner-heavy FTSE 100 index shed 0.9 percent, while German stocks fell 1 percent.
Most regional indices were pressured this week on worries about slowing global growth and tighter regulation of Chinese firms.
“Although still fairly measured at present, this current sell-off has the potential to be one of the most dramatic pullbacks we have seen all year, as inflation, stagflation, slowdown and virus risks all combine to knock back European and US markets,” IG chief market analyst Chris Beauchamp said.
Meanwhile, after closing up 3.4 percent on Thursday in one of the best single-day performances this year, the European travel and leisure index added 1.2 percent on Friday. The index closed 2.7 percent higher for the week, leading gains across European sectors.
Wizz Air Holdings PLC, British Airways owner IAG and InterContinental Hotels Group PLC rose 2 to 5 percent after the UK said it would simplify COVID-19 rules for international travel.
While European stock markets ended the week on a steady footing, next week could be pivotal in determining near-term market direction, with the US Federal Reserve and the Bank of England’s policy meetings, as well as German elections on deck.
“If the caution we have seen this week does carry over into Monday and beyond, then the next Fed meeting provides another reason to tread carefully,” Beauchamp said.
China-exposed luxury stocks such as LVMH Moet Hennessy Louis Vuitton SE, Kering SA, Hermes International SCA and Richemont SA rebounded, following sharp losses earlier this week on fears of fresh COVID-19 restrictions and regulatory moves in China.
Germany’s Commerzbank AG climbed 1.2 percent after a Handelsblatt report said US investor Cerberus Capital Management was considering taking a 15.6 percent state in the bank after the federal election.
Spanish pharmaceuticals company Grifols SA rose 5.8 percent after it proposed a 1.6 billion euro (US$1.9 billion) takeover of its German rival Biotest AG in a move to consolidate the plasma-based drug industry.
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
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,
RSS