European stocks gained for a second week after companies from Roche Holding AG to Vodafone Group PLC reported better-than-estimated results, suggesting the economic slump is easing.
Roche, the world’s biggest maker of cancer medicines, and Vodafone, the largest mobile-phone company, advanced more than 6 percent. Rio Tinto Group, the third-biggest mining company, led gains among raw-material producers as base metals climbed. Lloyds Banking Group PLC surged 16 percent on signs the UK housing market is stabilizing.
The Dow Jones STOXX 600 Index rose 4.3 percent in the past week to 219.67 as all 19 industry groups advanced. The benchmark index for European equities has rallied 11 percent since July 10 as US companies from Goldman Sachs Group Inc to Johnson & Johnson and Apple Inc posted results that exceeded analysts’ forecasts. The gauge completed a nine-day rally on Thursday, the longest stretch of gains since 2006.
“The earnings season started very well in the US,” said Manfred Hofer, head of equity analysis at LGT Capital Management in Pfaeffikon, Switzerland, which oversees about US$73 billion. “The results have surprised positively because companies have carried out cost cutting and that has paid off but sales still leave something to be desired.”
More than half of earnings at European companies that have reported results since July 8 beat analyst forecasts, according to Bloomberg data.
Profits have shrunk 28 percent in the period for companies on the STOXX 600, while 37 of 69 companies have reported better-than-estimated results, the data show.
Among the 181 companies in the Standard & Poor’s 500 Index that have posted second-quarter results, 75 percent beat the average analyst forecast, according to data compiled by Bloomberg. That would be the highest full-quarter figure on record, Bloomberg data going back to 1993 show.
NO HUMAN ERROR: After the incident, the Coast Guard Administration said it would obtain uncrewed aerial vehicles and vessels to boost its detection capacity Authorities would improve border control to prevent unlawful entry into Taiwan’s waters and safeguard national security, the Mainland Affairs Council (MAC) said yesterday after a Chinese man reached the nation’s coast on an inflatable boat, saying he “defected to freedom.” The man was found on a rubber boat when he was about to set foot on Taiwan at the estuary of Houkeng River (後坑溪) near Taiping Borough (太平) in New Taipei City’s Linkou District (林口), authorities said. The Coast Guard Administration’s (CGA) northern branch said it received a report at 6:30am yesterday morning from the New Taipei City Fire Department about a
IN BEIJING’S FAVOR: A China Coast Guard spokesperson said that the Chinese maritime police would continue to carry out law enforcement activities in waters it claims The Philippines withdrew its coast guard vessel from a South China Sea shoal that has recently been at the center of tensions with Beijing. BRP Teresa Magbanua “was compelled to return to port” from Sabina Shoal (Xianbin Shoal, 仙濱暗沙) due to bad weather, depleted supplies and the need to evacuate personnel requiring medical care, the Philippine Coast Guard (PCG) spokesman Jay Tarriela said yesterday in a post on X. The Philippine vessel “will be in tiptop shape to resume her mission” after it has been resupplied and repaired, Philippine Executive Secretary Lucas Bersamin, who heads the nation’s maritime council, said
REGIONAL STABILITY: Taipei thanked the Biden administration for authorizing its 16th sale of military goods and services to uphold Taiwan’s defense and safety The US Department of State has approved the sale of US$228 million of military goods and services to Taiwan, the US Department of Defense said on Monday. The state department “made a determination approving a possible Foreign Military Sale” to the Taipei Economic and Cultural Representative Office in the US for “return, repair and reshipment of spare parts and related equipment,” the defense department’s Defense Security Cooperation Agency said in a news release. Taiwan had requested the purchase of items and services which include the “return, repair and reshipment of classified and unclassified spare parts for aircraft and related equipment; US Government
More than 500 people on Saturday marched in New York in support of Taiwan’s entry to the UN, significantly more people than previous years. The march, coinciding with the ongoing 79th session of the UN General Assembly, comes close on the heels of growing international discourse regarding the meaning of UN Resolution 2758. Resolution 2758, adopted by the UN General Assembly in 1971, recognizes the People’s Republic of China (PRC) as the “only lawful representative of China.” It resulted in the Republic of China (ROC) losing its seat at the UN to the PRC. Taiwan has since been excluded from
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