European shares on Friday closed near a nine-month high, supported by healthcare and banking stocks and upbeat economic data from the UK.
The pan-regional STOXX Europe 600 Index gained 0.52 percent to 452.54, outperforming their US peers after reporting season started with mixed bank earnings. The index closed its second consecutive week higher, with gains of 1.83 percent.
European banking stocks gained 0.8 percent.
UK’s FTSE 100 added 0.64 percent to 7,844.07, after data showed the British economy eked out 0.1 percent growth in November, helped by a boost from World Cup drinkers and video game sales, reducing the chance that it has already slipped into recession. The index rose 1.88 percent from last week.
In Germany, data showed the economy likely stagnated in the final quarter of last year and grew by 1.9 percent over the whole year, suggesting that Europe’s largest economy might just escape a recession over the winter. Germany’s DAX closed 0.19 percent higher at 15,086.52, up 3.26 percent weekly.
European shares have made an upbeat start to the month and the new year, after data signaled a slowdown in inflation in the eurozone and the US, which could allow central banks to slow the pace of their monetary policy tightening.
Photo: Reuters
“Some better GDP figures from the UK and Germany added to the cheerier atmosphere on Friday, and while equities might look a bit overextended in the short-term, they do seem poised for a better start to the year than many had feared,” said Chris Beauchamp, chief market analyst at online trading platform IG.
Rate-sensitive tech and retail stocks have led gains so far this year, up 14 percent and 15 percent, respectively, after a rough last year, when fears of an economic slowdown and rising interest rates hammered these sectors.
On Friday, healthcare stocks provided the biggest boost to the index, with Novo Nordisk A/S and Roche Holding AG gaining 2.5 percent and 1 percent respectively.
Enel SpA edged up 0.4 percent after its CEO was quoted as saying the Italian power utility company could secure up to 5 billion euros (US$5.41 billion) for investment from REPower EU energy funds in addition to 3.5 billion euros in EU recovery funds already won.
Advanced Micro Devices Inc (AMD) suffered its biggest stock decline in more than a month after the company unveiled new artificial intelligence (AI) chips, but did not provide hoped-for information on customers or financial performance. The stock slid 4 percent to US$164.18 on Thursday, the biggest single-day drop since Sept. 3. Shares of the company remain up 11 percent this year. AMD has emerged as the biggest contender to Nvidia Corp in the lucrative market of AI processors. The company’s latest chips would exceed some capabilities of its rival, AMD chief executive officer Lisa Su (蘇姿丰) said at an event hosted by
AVIATION: Despite production issues in the US, the Taoyuan-based airline expects to receive 24 passenger planes on schedule, while one freight plane is delayed The ongoing strike at Boeing Co has had only a minor impact on China Airlines Ltd (CAL, 中華航空), although the delivery of a new cargo jet might be postponed, CAL chairman Hsieh Su-chien (謝世謙) said on Saturday. The 24 Boeing 787-9 passenger aircraft on order would be delivered on schedule from next year to 2028, while one 777F freight aircraft would be delayed, Hsieh told reporters at a company event. Boeing, which announced a decision on Friday to cut 17,000 jobs — about one-tenth of its workforce — is facing a strike by 33,000 US west coast workers that has halted production
TECH JUGGERNAUT: TSMC shares have more than doubled since ChatGPT’s launch in late 2022, as demand for cutting-edge artificial intelligence chips remains high Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday posted a better-than-expected 39 percent rise in quarterly revenue, assuaging concerns that artificial intelligence (AI) hardware spending is beginning to taper off. The main chipmaker for Nvidia Corp and Apple Inc reported third-quarter sales of NT$759.69 billion (US$23.6 billion), compared with the average analyst projection of NT$748 billion. For last month alone, TSMC reported revenue jumped 39.6 percent year-on-year to NT$251.87 billion. Taiwan’s largest company is to disclose its full third-quarter earnings on Thursday next week and update its outlook. Hsinchu-based TSMC produces the cutting-edge chips needed to train AI. The company now makes more
AI AIM: The chipmaker wants joint research and development programs with the Czech Republic, and the government is considering supporting investments in a Czech location Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is planning to build more plants in Europe with a focus on the market for artificial intelligence (AI) chips as the chipmaker expands its global footprint, a senior Taiwanese official said. “They have started construction of the first fab in Dresden; they are already planning the next few fabs in the future for different market sectors as well,” National Science and Technology Council (NSTC) Minister Wu Cheng-wen (吳誠文) told Bloomberg TV in an interview that aired yesterday. Wu did not specify a timeline for TSMC’s further expansion in Europe. TSMC in an e-mailed statement said it