European stocks declined this week as better-than-estimated earnings failed to ease concern a seven-month rally in equities has outpaced the prospects for economic and profit growth.
STMicroelectronics NV led a retreat in technology companies after Royal Bank of Scotland Group PLC recommended selling the shares. Elan Corp sank 22 percent as its multiple sclerosis drug Tysabri was linked to 23 cases of a potentially fatal brain disease. Valeo SA advanced 4.9 percent after posting a quarterly profit. Nestle SA climbed 7.1 percent as UBS AG advised buying shares in the world’s largest food company.
The Dow Jones STOXX 600 Index slipped 0.3 percent to 244.89, following two weeks of gains. The regional gauge has rallied 55 percent since March 9, pushing its valuation to about 50 times companies’ reported earnings, near the most expensive level since 2003, weekly data compiled by Bloomberg show.
“It’s tough for companies to surprise on the upside because investors are anticipating better-than-estimated earnings,” said Markus Steinbeis, head of equity portfolio management at the German unit of Pioneer Investments, which oversees about US$221 billion globally. “Overall the environment for the equity market is good but the only headwind at the moment is high valuations.”
Stocks erased gains on Friday even after a report showed sales of existing US homes climbed last month to the highest level in more than two years.
GDP in the UK dropped unexpectedly in the third quarter as enduring slumps in services, manufacturing and construction kept the economy mired in its longest recession on record.
The UK’s Office for National Statistics said on Friday that GDP dropped for a sixth month, declining 0.4 percent in the third quarter from the second. Economists predicted a 0.2 percent increase in a Bloomberg News survey.
National benchmark indexes fell in 13 of the 18 western European markets.
Germany’s DAX declined 0.1 percent, while France’s CAC 40 retreated 0.5 percent. The UK’s FTSE 100 increased 1 percent.
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
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