European stocks rose this week, sending the Dow Jones STOXX 600 Index to its highest level since October, after US Federal Reserve Chairman Ben Bernanke said the world was “beginning to emerge” from a recession and reports signaled an improving economy.
UBS AG rallied 8.8 percent as the Swiss government sold its 6 billion-Swiss franc (US$5.6 billion) investment in the bank. Wienerberger AG, the world’s biggest brickmaker, surged 23 percent after Deutsche Bank AG recommended buying the shares. Holcim Ltd climbed 11 percent as the cement maker raised its savings target for this year.
The STOXX 600 added 2.7 percent to 234.85. Economic data this week showed that sales of existing US homes jumped more than forecast last month to the highest level in almost two years, while investor confidence in Germany climbed more than estimated last. German services and French manufacturing unexpectedly expanded this month, Markit Economics said, citing its purchasing managers’ survey.
“The PMI data for the euro-zone are stunning,” said Matthias Joerss, head of equity strategy at Sal Oppenheim Jr & Cie in Frankfurt. “We should get very decent earnings reports for the third quarter.”
The STOXX 600 has rallied 49 percent since March 9 as companies worldwide reported better-than-projected earnings and investors speculated government measures and interest-rate cuts will help to pull the global economy out of recession.
National benchmark indexes rose in all 18 western European markets this week. The UK’s FTSE 100 and Germany’s DAX both climbed 2.9 percent. France’s CAC 40 advanced 3.5 percent.
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
The arrival of a cold front tomorrow could plunge temperatures into the mid-teens, the Central Weather Administration (CWA) said. Temperatures yesterday rose to 28°C to 30°C in northern and eastern Taiwan, and 32°C to 33°C in central and southern Taiwan, CWA data showed. Similar but mostly cloudy weather is expected today, the CWA said. However, the arrival of a cold air mass tomorrow would cause a rapid drop in temperatures to 15°C cooler than the previous day’s highs. The cold front, which is expected to last through the weekend, would bring steady rainfall tomorrow, along with multiple waves of showers
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