European stocks capped the first weekly decline in more than a month as investors speculated share prices have outpaced the outlook for economic growth and corporate earnings.
Rio Tinto Group, the world’s third-largest mining company, and Royal Dutch Shell PLC, Europe’s biggest oil producer, fell with copper and crude prices. DSG International PLC, Europe’s second-largest electronics goods retailer, slid 15 percent after UK retail sales unexpectedly retreated. K+S AG sank 21 percent as the potash producer forecast a drop in sales and earnings.
The Dow Jones STOXX 600 Index lost 2.8 percent to 208.28 in the week, the biggest drop since the week ended on May 15. A three-month, 36 percent surge through the end of last week had left the measure trading at 25.4 times profit, the highest level since 2004, according to weekly data compiled by Bloomberg.
“It’s not surprising that we saw some profit taking after the tremendous rally,” said Gerold Kuehne, who manages about US$115 million at LLB Asset Management AG in Vaduz, Liechtenstein. “The economy determines the direction of the markets and we saw that if data is better than expected, like US leading indicators, it still has the potential to give the market a boost.”
European stocks pared the weekly loss after reports showed the US leading economic indicators index climbed for a second straight month last month and the number of Americans receiving unemployment benefits dropped for the first time since January.
Even so, US industrial production fell last month for the 16th time in the last 17 months, reflecting declines in consumer goods and business equipment that signals the manufacturing slump remains broad-based.
EU leaders spotted the first signs of a “sustainable economic recovery” and started planning to roll back budget deficits piled up to combat the financial crisis. The 27 government heads said the looming end of the slump means it is time to start hatching an “exit strategy.” They also agreed to overhaul financial regulation after banking supervision failed to contain the crisis.
National benchmark indexes fell in all 18 western European markets. The UK’s FTSE 100 dropped 2.2 percent as Lonmin PLC tumbled. France’s CAC 40 lost 3.2 percent as Michelin & Cie fell, while Germany’s DAX slid 4.5 percent.
A measure of basic-resources shares in the STOXX 600 retreated 9.5 percent, the second-biggest decline among 19 industry groups.
Taiwan last night blanked world No. 1 Japan 4-0 to win the World Baseball Softball Confederation’s (WBSC) Premier12 for the first time. Taiwanese ace Lin Yu-min (林昱珉) held defending champions Japan to just one hit and no runs in the first four innings, before catcher Lin Chia-cheng (林家正) opened the fifth inning with a solo home run. That was soon followed by a three-run homer from Taiwanese captain Chen Chieh-hsien (陳傑憲) to put Taiwan ahead in the prestigious tournament of the world’s top 12 baseball teams. In addition to a superb performance from 21-year-old Arizona Diamondbacks prospect Lin, three more Taiwanese pitchers
SUPPORT: Arms sales to NATO Plus countries such as Japan, South Korea and Israel only have to be approved by the US Congress if they exceed US$25m The US should amend a law to add Taiwan to the list of “NATO Plus” allies and streamline future arms sales, a US commission said on Tuesday in its annual report to the US Congress. The recommendation was made in the annual report by the US-China Economic and Security Review Commission (USCC), which contained chapters on US-China economic and trade ties, security relations, and Taiwan and Hong Kong. In the chapter on Taiwan, the commission urged the US Congress to “amend the Arms Export Control Act of 1976 to include Taiwan on the list of ‘NATO Plus’ recipients,” referring to
Taiwan yesterday advanced to the gold medal match of the World Baseball Softball Confederation’s (WBSC) Premier12 for the first time in history, despite last night losing 9-6 to Japan. Taiwan advanced after the US defeated Venezuela in the first game on the last day of the Super Round. However, the US had no chance of advancing to the championship game unless it defeated Venezuela by at least nine points. The US won 6-5. As a result, the two teams — who both had one win and two losses in the Super Round — are to face off again in the
Minister of Labor Ho Pei-shan (何佩珊) said she would tender her resignation following criticism of her handling of alleged bullying by Ministry of Labor Workforce Development Agency branch director Hsieh Yi-jung (謝宜容) resulting in the death of an employee. The ministry yesterday gave Hsieh two demerits and said she is subject to review by the Disciplinary Court. The severest possible punishment would be her removal from office and being barred from government jobs indefinitely. Workforce Development Agency Director-General Tsai Meng-liang (蔡孟良) also received a major demerit and was transferred to another position. Premier Cho Jung-tai (卓榮泰) issued a formal apology
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