European stocks declined for a third week on concern that the US economy is stalling, while US Federal Reserve Chairman Ben Bernanke pledged that the central bank “will do all that it can” to help the recovery.
CRH PLC led construction stocks lower, plunging 13 percent, after forecasting lower earnings. Yell Group PLC tumbled 16 percent after STOXX Ltd said it was removing the company from its benchmark European index. Persimmon PLC gained 8.4 percent after reporting improved earnings.
The STOXX Europe 600 Index slipped 0.4 percent to 251.24 this week as 10 out of 19 industry groups dropped. The gauge has declined 7.7 percent from this year’s high on April 15 after a string of worse-than-forecast economic reports from the US and renewed concern that some European countries will struggle to contain deficits fueled concern that the global economic recovery is losing steam.
“We are going to see a continued string of disappointing US numbers, and while Europe lags the US by about six months, we could expect horrible numbers coming out of Europe by Christmas,” said Christian Blaabjerg, chief equity strategist at Saxo Bank in Copenhagen. “We’ll see some very considerable price retracement in equities.”
National benchmark indices fell in 14 of the 18 western European markets. Germany’s DAX lost 0.9 percent and France’s CAC 40 slid 0.5 percent, while the UK’s FTSE 100 gained 0.1 percent.
CRH, the world’s second-largest maker and distributor of building materials, tumbled by 13 percent after forecasting that earnings before interest, taxes, depreciation and amortization would probably fall about 10 percent this year.
A gauge of construction and materials shares on the STOXX 600 fell 2.3 percent, the second-worst performance out of 19 industry groups.
Allied Irish Banks PLC fell 6.3 percent and Yell tumbled 16 percent as STOXX said the companies would be among seven removed from the benchmark STOXX 600 from next month after its regular quarterly membership review.
United Internet AG rallied 8.6 percent, the biggest gain on the STOXX 600. The German Internet service provider expects sales to rise about 15 percent to 1.9 billion euros (US$2.4 billion) this year.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
CELEBRATION: The PRC turned 75 on Oct. 1, but the Republic of China is older. The PRC could never be the homeland of the people of the ROC, Lai said The People’s Republic of China (PRC) could not be the “motherland” of the people of the Republic of China (ROC), President William Lai (賴清德) said yesterday. Lai made the remarks in a speech at a Double Ten National Day gala in Taipei, which is part of National Day celebrations that are to culminate in a fireworks display in Yunlin County on Thursday night next week. Lai wished the country a happy birthday and called on attendees to enjoy the performances and activities while keeping in mind that the ROC is a sovereign and independent nation. He appealed for everyone to always love their
RSS