Daily Report 10.07.2019
Datum objave: 10.07.2019
Dow posts 3-day slide as Wall Street awaits Powell testimony; European stocks close lower after BASF auto warning; Deutsche Bank falls a further 4%
The Dow Jones Industrial Average fell slightly on Tuesday as investors awaited more clues on the Federal Reserve’s next monetary policy move. The 30-stock index closed 22.65 points lower, or 0.1%, at 26,783.49, notching a three-day losing streak, after being pressured by 3M shares. The stock fell more than 2% after an analyst at RBC Capital Markets downgraded it to sector perform from outperform amid worries over the macro economic environment and overhang from litigation. Before the close, however, the Dow briefly turned positive.
The Nasdaq Composite and S&P 500 rose, however, as Facebook and Amazon shares gained more than 1% each. Netflix shares also added to the indexes gains. The Nasdaq gained 0.5% to close at 8,141.73 while the S&P 500 rose 0.1% to 2,979.63.
In corporate news, Netflix shares rose 1% after the streaming company said the third season of “Stranger Things” posted a viewership record. PepsiCo reported better-than-expected earnings, but the stock fell more than 1%.
European stocks closed lower on Tuesday as a warning of an autos slowdown from German chemicals giant BASF dragged down autos and chemicals companies.
The pan-European Stoxx 600 was provisionally down 0.5% at the closing bell, with basic resources stocks more than 2% lower. Markets were also dragged down by autos stocks, which shed nearly 1.6%, as well as the chemicals sector, which was down by more than 1% at the end of the session.
It came after German chemicals giant BASF warned its profit would fall well below forecasts for the second quarter of the year, with the company also predicting a slowdown in the automotive sector. BASF’s stock fell more than 3% by the end of Tuesday’s session. The news also impacted Bayer spin-off Covestro, which fell almost 4%, and French automotive supplier Faurecia, which tumbled 5%.
Serbia's end-May budget surplus at 8.3 bln dinars
Serbia registered an 8.3 bln dinar budget surplus at the end of May 2019, the Ministry of Finance said Monday. Revenues totalled 498.4 bln dinars, with expenditures at 490.1 bln dinars. The May surplus was 2.8 bln dinars. May revenues totalled 95 bln dinars, with tax revenues accounting for 87.7 bln dinars. As usual, VAT revenues (42.9 bln dinars) and excise tax revenues (27 bln dinars) accounted for the majority of the tax revenues.
Jobless rate to be at around 10% by end-year
The head of the Serbian National Employment Service Zoran Martinovic says positive trends on the Serbian labour market are continuing, as indicated by a Q1 2019 unemployment rate of just 12.1 pct. In an appearance on the RTS, he said the unemployment rate was 2.7 pct down y-o-y. "The number of (unemployed) people registered by the National Employment Service is also on a steady decline and there are 527,000 unemployed people at this time - 9,000 fewer than last month and 9 pct fewer compared to last year," Martinovic said.
European Investment Bank announces Western Balkans priorities
The European Investment Bank (EIB) has announced today that competitiveness, innovation and climate are top priorities for the EIB in the Western Balkans. The press release also points out that the bank will support roads, railways, water treatment plants, schools, hospitals and SMEs. The European Investment Bank remains committed to the economic and social development of the Western Balkans and plans to grow its investment portfolio in the region – announced the President of the EIB Werner Hoyer at the Poznań Summit for the Western Balkans.
Daily Report 16.07.2019
16.07.2019 | Stocks eke out a record close, but Wall Street remains cautious on upcoming earnings reports; Europe stocks close higher after China data meets expectations; Galapagos up 18%; Serbia, France sign 22 agreements; Energoprojekt expects EUR 249m in sales and EUR 8m in FY 2019 profit; May saw 1,822 construction permits issued – value of works up 150%
Daily Report 15.07.2019
15.07.2019 | Dow jumps 240 points to all-time high as Wall Street ends record-breaking week on a high note; European stocks close flat following euro zone, China data; Thomas Cook plunges 60%; NBS: Serbian June consumer prices 0.3 pct down m-o-m; NBS buys 60 mln euros, Monday's rate at RSD 117.7365; Each second apartment in Serbia built illegally
Daily Report 11.07.2019
11.07.2019 | Stocks close higher, S&P 500 hits 3,000 for the first time as Fed chief signals rate cut ahead; European stocks close lower as Powell hints at Fed rate cut; Serbia regional leader in greenfield investments; NBS: June FX reserves at 12.14 bln euros, highest since 2000; Serbia to introduce new salary bands in 2020
Daily Report 10.07.2019
10.07.2019 | Dow posts 3-day slide as Wall Street awaits Powell testimony; European stocks close lower after BASF auto warning; Deutsche Bank falls a further 4%; Serbia's end-May budget surplus at 8.3 bln dinars; Jobless rate to be at around 10% by end-year; European Investment Bank announces Western Balkans priorities
Daily Report 09.07.2019
09.07.2019 | Dow falls more than 100 points as Apple leads tech slide, Wall Street awaits Powell testimony; European markets close lower despite strong US job growth; Deutsche Bank shares fall 5% as restructuring begins; Special law on Morava Corridor adopted – Construction to start soon, works worth EUR 800 million; Smederevo steel mill, Fiat, Tigar Serbia's top exporters; Serbia's public debt at 51.8% of GDP at end-May
Daily Report 08.07.2019
08.07.2019 | Stocks fall from record highs after strong jobs report dampens hope of a Fed rate cut; Europe stocks close lower; Trade unions requesting minimum wage of RSD 32,000 – Employers say RSD 28,600 more realistic; KMBN: NLB and AIK Banka one of the candidates for the takeover of Komercijalna Banka; Telekom Srbija acquires cable operator Telemark
Daily Report 05.07.2019
05.07.2019 | European stocks close subdued as Fed rate cut expectations grow; US markets closed; Serbia to start construction of 400 kilometers of new highways in 2019 – Works on connection with Pristina to begin as well; Chinese company to invest USD 300 million in modernization of Smederevo steel mill by 2021; Fiscal Council: 0.5% fiscal deficit well set
Daily Report 01.07.2019
01.07.2019 | Stocks rise to close out Dow’s biggest June gain since 1938, S&P 500′s best first half in 2 decades; European stocks close higher ahead of Trump-Xi meeting at G-20; SORS: Serbian January-May exports 8.3% up, imports 10.8% up; SORS: Serbian consumption 11% up in January-May 2019; NIIS: NIS GA approved RSD 39.9 per share as a cash divided
Daily Report 28.06.2019
28.06.2019 | S&P 500 snaps 4-day slide as bank shares rise, Wall Street awaits Trump-Xi meeting at G-20 summit; KMBN: Serbia buys Komercijalna banka shares for 43.7 mln euros; Food, non-alcoholic beverages 22 pct cheaper in Serbia than in EU; Money from Komercijalna banka sale to improve living standards;
Daily Report 25.06.2019
25.06.2019 | Stocks close little changed with the June rally on hold ahead of US-China trade talks; European stocks close lower amid US-Iran tensions; Daimler profit warning hits autos; Cadez: Growth rate 3.5-4 pct over medium term; Announced investment cycle to boost GDP – economists; Serbia launches sale of Jat Tehnika at starting price of 20.5 mln euro