Daily Report 06.06.2019
Datum objave: 06.06.2019
Dow rallies 200 points as stocks surge for a second day on hope the Fed will cut rates; European stocks close mostly higher; Italian banks fall on EU ruling
Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles. The Dow Jones Industrial Average rose 165 points, while the S&P 500 advanced 0.6%. The Nasdaq Composite traded 0.3% higher. The Dow surged more than 500 points on Tuesday after Fed Chair Jerome Powell opened the door to rate cuts.
Tech shares jumped 1% while the utilities and real estate sectors got a boost from lower rates. Apple contributed to tech’s gains, rising 1.5% after CEO Tim Cook said the company had not been targeted by China amid rising U.S.-China trade fears. Salesforce, meanwhile, rose 3.6% on stronger than expected earnings.
European stocks closed mostly higher Wednesday but the rally lost steam after the EU ruled Italy was in breach of fiscal rules. The pan-European Stoxx 600 closed provisionally up 0.3%, with utilities stocks making a nearly 1.3% gain while banks were one of a handful of sectors to fall into the red, slipping 0.5%.
China Railway International seeking subcontractors for works on Belgrade Center-Stara Pazova section
Within the project of modernization and reconstruction of the Belgrade-Subotica high-speed railway, the Serbian branch of China Railway International opened 4 tendering procedures for subcontractors for works on the Belgrade Center-Stara Pazova section. As stated in the documentation, the first tender entails architectural works on pedestrian underpasses in Zemun, Batajnica, Nova Pazova and Stara Pazova, drainage works, thermomechanical installations and fire suppression, roads traffic signalization and construction of platforms. The second tender pertains to substructure works and relocation and protection of telecommunication network.
World Bank retains 3.5% growth projection for Serbia
In its June Global Economic Prospects report, the World Bank has retained a 3.5% GDP growth forecast for Serbia for 2019 and a 4 pct growth forecast for the next two years. Global growth in 2019 has been downgraded to 2.6 pct, 0.3 percentage point below previous forecasts, reflecting weaker-than expected international trade and investment at the start of the year. Growth is projected to gradually rise to 2.8 pct by 2021, predicated on continued benign global financing conditions, as well as a modest recovery in emerging market and developing economies previously affected by financial market pressure.
PepsiCo confirms it will acquire Knjaz Milos with KMV
PepsiCo Inc, a global food and beverage producer that operates in over 200 countries and territories worldwide, on Wednesday confirmed it would acquire a 100 pct stake in the Serbian company Knjaz Milos with Karlovarske Mineralni Vody (KMV), the Czech Republic's largest non-alcoholic drinks distributor. A PepsiCo statement said the transaction included a purchase of Knjaz Milos production capacities in Serbia and well-positioned brands such as Knjaz Milos, Aqua Viva, Guarana, ReMix, Gusto and others. The transaction is due to be completed in Q3 2019, pending approval from the antimonopoly commissions of Serbia and Montenegro.
Daily Report 10.06.2019
10.06.2019 | Dow jumps 260 points, posts best week since November after jobs report spurs rate-cut hopes; European stocks close higher as weak US jobs data points to potential Fed rate cut; NBS: NBS keeps key policy rate at 3%; Fabrizi: Serbia has achieved good macroeconomoc results; NIIS: Antic signs agreement on natural gas power stations
Daily Report 06.06.2019
06.06.2019 | Dow rallies 200 points as stocks surge for a second day on hope the Fed will cut rates; European stocks close mostly higher; Italian banks fall on EU ruling; China Railway International seeking subcontractors for works on Belgrade Center-Stara Pazova section; World Bank retains 3.5% growth projection for Serbia; PepsiCo confirms it will acquire Knjaz Milos with KMV
Daily Report 05.06.2019
05.06.2019 | Dow rallies more than 500 points ; European markets close higher as autos climb 3.2%; Serbia-EAEU trade deal may be signed by end-2019; NBS: Dinar grows stronger with confidence of important investors; ENHL: Energoprojekt contracted two jobs in Serbia worth EUR 21m
Daily Report 04.06.2019
04.06.2019 | Nasdaq drops more than 1%, enters correction territory as regulation fears batter big tech; European markets close higher after Wall Street erases losses; KMBN: Komercijalna Banka might be sold for EUR 415 million; Serbian import rises still faster vs. export; Unemployment in 1Q19 ta 12.1%
Daily Report 03.06.2019
03.06.2019 | KMBN: Public call for statements of interest in purchasing Komercijalna Banka opens; Serbia's GDP 2.5% up y-o-y in real terms in Q1 2019; SORS, NBS: Industrial output in April down 0.8% y/y; Dow drops more than 350 points after Trump threatens new tariffs on Mexico, posts 6-week slide; European markets close lower after Trump stokes recession fears; Stoxx 600 hits 3-month low
Daily Report 31.05.2019
31.05.2019 | Stocks rise slightly, but trade and economy worries persist; European markets close higher; Axel Springer leaps on KKR investment talks; MTLC: Metalac reported slightly higher consolidated sales and 7% lower net profit, for 2018; EC: Strong investment activity supports growth of Serbian economy; Minimum wage to be increased in September
Daily Report 17.05.2019
17.05.2019 | ENHL: Energoprojekt reports EUR 346m backlog; NBS: Foreign direct investments in Serbia amount to EUR 1.2 billion in the first four months; JESV: Jedinstvo reported higher quarterly sales and lower net profit; Dow jumps more than 200 points, posts 3-day winning streak, boosted by bank shares and Walmart; European stocks close higher as trade fears fade
Daily Report 13.05.2019
13.05.2019 | Agreement on sale of Port of Novi Sad to P&O Port Dubai for EUR 7.99 million signed; IMF mission opens official discussions with Serbian delegation; 88 pct of AHK members would invest in Serbia again – survey; Dow stages 450-point comeback, ends the day higher after Trump says China trade talks to continue, Europe stocks close higher despite US tariff hike on Chinese goods, Thyssenkrupp rises 28%
Daily Report 10.05.2019
10.05.2019 | State sells its share in Jubmes Banka to Alta Pay Group at the stock exchange; Serbia's c-bank keeps key rate unchanged at 3.0%; 15 state-owned companies to be sold by end of year; Dow falls 140 points, S&P drops for a fourth day as new China tariffs set to kick in at midnight, European markets slide as trade fears mount, autos down more than 3%
Daily Report 09.05.2019
09.05.2019 | EBRD sees steady growth in Western Balkans – Montenegro and Serbia fastest growing economies in the region in 2018; Construction of Preljina-Pozega highway section to begin on May 17; IMF to recommend increase in price of electricity by up to 5%?; Stocks close little changed in volatile trading day as investors unsure of trade deal outcome, European stocks close higher as White House says China wants to make trade deal