Europe: Shares see first daily gain in five on strong earnings
The pan-European Stoxx 600 index closed 1 per cent higher. Most major regional bourses also gained, with Germany benchmark DAX gaining 1.5 per cent, while France's CAC 40 added 1.3 per cent.
Swiss engineering group ABB jumped almost 10 per cent after posting its highest quarterly order intake yet, driven by demand for products used in data centres to support artificial intelligence.
France's Legrand gained close to 9 per cent after the electrical infrastructure provider hiked its annual sales target, driven by strong growth in the North American data centre segment. Rival Schneider Electric also jumped 7.7 per cent.
European chipmakers recouped some losses from the previous session with TSMC, the world's main producer of advanced AI chips, posting a record profit in the second quarter, boosting sentiment. ASML rose 3.9 per cent, following an 11 per cent drop on Wednesday.
Ocado climbed 18.5 per cent after the online supermarket reported a 77 per cent rise in first-half underlying earnings and said its priority is to generate cash in its next financial year.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The latest forecasts had shown that the outlook for European corporate health has deteriorated, with expectations of a drop of 0.7 per cent year on year in second-quarter earnings, according to LSEG I/B/E/S data.
Waiting on trade clarity
Investors continued to await clarity on US-EU trade talks with the bloc preparing retaliatory measures in case negotiations with Washington failed.
'Markets are still pretty optimistic that this may be the case and that things will progress in the next two weeks,' said Daniela Hathorn, senior market analyst at Capital.com.
'We have seen in the past, and even in Trump's first term, the amount of times that he actually threatened action and what he delivered was very limited.'
European equities fell sharply on Wednesday after Bloomberg reported that Trump is likely to fire Federal Reserve chair Jerome Powell, but Trump later said he is not planning to do so.
Meanwhile, Britain and Germany signed a wide-ranging friendship treaty that deepened ties in areas including defence and transport as UK attempts to reset ties with the EU.
Among other moving stocks, Tomra Systems dropped 13.3 per cent, the worst day since October 2023, after the Norwegian group posted a second-quarter net sales miss.
Swedish carmaker Volvo Cars advanced 7.9 per cent after reporting a sharp decline in second-quarter operating profit that still exceeded analyst expectations.
Also on Thursday, US June retail sales data showed retail sales rebounding more than expected in June. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
25 minutes ago
- Straits Times
HDB launches 10,209 BTO and balance flats, as priority scheme for singles kick in
Find out what's new on ST website and app. Flats in Standard projects will not have a subsidy recovery clause when they are sold, and come with a five-year minimum occupation period (MOP). SINGAPORE - The Housing Board launched 5,547 Build-To-Order (BTO) flats on July 23 for sale across eight projects in Bukit Merah, Bukit Panjang, Clementi, Sembawang, Tampines, Toa Payoh and Woodlands, including the first units in the new estate of Sembawang North. Another 4,662 balance flats have also been put on offer, including 1,733 Sale of Balance Flats (SBF) units that are completed and ready for home buyers to move into. The bulk of the balance flats are in Kallang/Whampoa, Tengah and Geylang. A slew of policy changes that benefit singles and families looking to upgrade or right-size their homes will also take effect from this sales exercise. HDB announced it would increase the subsidies for four Prime projects in Bukit Merah, Toa Payoh and Clementi to keep the flats affordable for more Singaporeans. It did not specify the extent of this increase. Owners of these flats will be subject to a higher subsidy clawback upon the resale of their flats. The clawback is set at 11 per cent for Toa Payoh Ascent, and Alexandra Peaks and Alexandra Vista in Bukit Merah. At Clementi Emerald, it is 12 per cent. These correspond to the extent of the extra subsidies offered, said HDB. There is also a 10-year minimum occupation period (MOP) for these flats. The clawback for Prime flats was 9 per cent in the past two sales exercises. Top stories Swipe. Select. Stay informed. Singapore S'pore's domestic recycling rate drops to all time low of 11% Business Singapore's digital banks finding their niche in areas like SMEs as they narrow losses in 2024 Asia Japan Prime Minister Ishiba to resign by August, Mainichi newspaper reports World Trump says US will charge 19% tariff on goods from Philippines, down from 20% Singapore Two found dead after fire in Toa Payoh flat Singapore 2 foreigners arrested for shop theft at Changi Airport Singapore Ports and planes: The 2 Singapore firms helping to keep the world moving The remaining four projects fall under the Standard classification. Sembawang Beacon, the first project in the new Sembawang North neighbourhood, comprises 775 two-room flexi and three-, four- and five-room flats, as well as three-generation units, on a site bounded by Admiralty Link, Admiralty Lane and Canberra Road. The project, which has a wait of three years, will be near amenities such as a neighbourhood park and Sembawang MRT station. Flats in Standard projects will not have a subsidy recovery clause when they are sold, and come with a five-year MOP. Prices (without grants) range from $148,000 to $207,000 for a two-room flexi flat, $267,000 to $323,000 for a three-room flat, $328,000 to 413,000 for a four-room flat, $487,000 to $586,000 for a five-room flat, and $497,000 to $585,000 for a three-generation unit. A Standard project in Simei – which HDB classifies as part of Tampines – will have 380 units of two-room flexi, four- and five-room flats on a plot bounded by Simei Road and Upper Changi Road East. They are the first public housing flats in Simei in more than a decade. Toa Payoh Ascent, a Prime project, will house 741 two-room flexi, three- and four-room flats on a site bounded by Toa Payoh Rise and Braddell Rise. It is about a five-minute walk to Caldecott MRT station. Prices (without grants) range from $212,000 to $354,000 for a two-room flexi flat, $406,000 to $514,000 for a three-room unit, and $583,000 to $777,000 for a four-room flat. For comparison, three-room resale flats in Toa Payoh transacted at between $780,000 - $830,000, and four-room resale flats at between $1.07 million and $1.17 million, said HDB. From July's BTO exercise, the new Family Care Scheme comes into effect. Under the scheme, first-timer singles will be granted priority access within the existing quota for single buyers when they buy a two-room flexi flat near or with their parents. A second component of the scheme, which grants singles priority if they jointly apply for two units in the same BTO project with their parents, will kick in from the October sales exercise. There will be no change to the existing priority access for married couples and seniors - up to 30 per cent of flat supply in a BTO launch is allocated to first-timer families, while at least 40 per cent of two-room flexi flats are set aside for seniors. Another change that takes place from this sales exercise is a larger allocation quota for second-time home buyers applying for three-room and larger flats. Up to 20 per cent of three-room Standard flats and up to 10 per cent of three-room Plus and Prime flats and four-room and larger flats would be set aside for second-timer families. First-timer families would still have at least 80 per cent to 90 per cent of three-room and larger flats set aside for them. The deferred income assessment criteria was also relaxed from this sales exercise, allowing couples the option to delay their income assessment for a housing loan until just before they collect the keys to their flat, as long as one party is a full-time student or national serviceman. Previously, both parties needed to meet this requirement. Lastly, the Fresh Start Housing Grant was increased from $50,000 to $75,000 for eligible families who are second-time home buyers currently living in public rental flats. The grant will help them to buy a new two-room flexi or three-room standard BTO or balance flat on a shorter lease. HDB said applicants who wish to improve their chances of securing a flat are encouraged to apply for Standard flats, where at least 90 per cent of the four-room and larger flats are set aside for first-timer families. Flat applications will close at 11.59pm on July 30 on the HDB Flat Portal. In the next BTO exercise in October, HDB will offer about 9,100 flats in Ang Mo Kio, Bedok, Bishan, Bukit Merah, Jurong East, Sengkang, Toa Payoh and Yishun. A fifth assisted living project in Sengkang will also be on offer.
Business Times
25 minutes ago
- Business Times
Japan PM Ishiba to announce resignation next month, Mainichi says
[TOKYO] Japan's Prime Minister Shigeru Ishiba plans to announce his resignation by the end of next month, the Mainichi newspaper reported on Wednesday. Ishiba is facing growing opposition from within his Liberal Democratic Party for his vow to stay in power despite the ruling coalition's bruising defeat in Sunday's upper house election. According to the Yomiuri daily, Ishiba told his close associates on Tuesday evening that he would explain how he would take responsibility for the election loss once a solution was reached on trade negotiations. In a post on Truth Social posted on Wednesday Asian hours, US President Donald Trump said he had just completed a 'massive' deal with Japan that included US$550 billion in investments into the United States. Speaking after Trump's post, Ishiba said he was ready to meet or speak over the phone with Trump after being briefed on the details by Japan's top trade negotiator Ryosei Akazawa, who has been in Washington for trade talks. 'I can't say until I scrutinise the outcome of the agreement,' Ishiba told reporters when asked how the deal with Washington could affect his decision on whether to step down. In explaining his decision to stay on, Ishiba has stressed the need to avoid creating a political vacuum as Japan faced challenges including difficult trade negotiations with the US that would have a huge impact on the export-reliant economy. 'I will stay in office and do everything in my power to chart a path toward resolving these challenges,' Ishiba said in a news conference on Monday, adding that he intended to speak directly with Trump as soon as possible and deliver tangible results. Ishiba is expected to meet ruling party heavyweights later on Wednesday for discussions on the election outcome. REUTERS
Business Times
25 minutes ago
- Business Times
Asia: Tokyo's Nikkei leads rally after Japan-US trade deal
[HONG KONG] Tokyo stocks rallied with the yen on Wednesday after Japan and the United States finally hammered out a trade deal to slash Donald Trump's tariffs, including those on the crucial car sector. Investors were also cheered by news that Washington had reached agreements with Indonesia and the Philippines, stoking optimism that other countries will achieve deals to avoid the worst of the US president's levies. Despite a lack of deals being made leading up to Trump's self-imposed Aug 1 cut-off date, equity markets have been on the march in recent weeks on optimism that governments will eventually get over the line. Japan had been one of those yet to sign, despite a string of trips to Washington by trade envoy Ryosei Akazawa, dampening investor sentiment in Tokyo. But Trump said on Tuesday that officials had agreed to a 'massive' deal that would include a 15 per cent tariff on imports from Japan, down from the previously threatened 25 per cent. The pact also saw the 25 per cent levy on autos - a major export to the United States - slashed to 15 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Trump announced on his Truth Social platform. 'Japan will invest, at my direction, US$550 Billion Dollars into the United States, which will receive 90 per cent of the Profits.' He did not provide further details on the investment plan, but claimed the deal 'will create Hundreds of Thousands of Jobs.' Japanese Prime Minister Shigeru Ishiba said that he needed to examine the deal before commenting. Akazawa wrote on X: 'Mission accomplished.' Traders poured back into the market, pushing the Nikkei up more than two per cent, thanks to soaring automakers. Tokyo and Mitsubishi rocketed around 12 per cent and Nissan jumped more than nine per cent. The yen strengthened to 146.20 per dollar - compared with close to 148 Tuesday. The unit had already enjoyed a recent tick-up after Ishiba vowed to remain in office despite a devastating weekend election loss. Trump also hailed an agreement with Manila that will see the toll on Philippine goods lowered by one percentage point to 19 per cent, while tariffs on Indonesia were slashed from 32 per cent to 19 per cent. Shares in Manila and Jakarta rose. The announcements boosted hopes that other deals could be in the pipeline before next Friday's deadline, though talks with the European Union and South Korea remain elusive for now. Still, US Treasury Secretary Scott Bessent said he would meet his Chinese counterparts in Stockholm next week for talks, as a separate mid-August deadline approaches for US levies on Beijing to snap back to steeper levels. Elsewhere in Asia, Hong Kong built on its 2025 surge to hit its highest level since late 2021, while Shanghai, Sydney, Singapore and Taipei were also well up. Seoul was flat and Wellington dipped. The advances came after a broadly positive day on Wall Street where the S&P 500 hit another peak but the Nasdaq snapped a six-day streak of records. Eyes are also on the release of earnings from Google parent Alphabet and other tech giants including Tesla and Intel. AFP
