Daily Report 11.07.2019
Datum objave: 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
Stocks reached record highs Wednesday after testimony from Federal Reserve Chair Jerome Powell bolstered the case for easier monetary policy in the U.S. The S&P 500 briefly broke above 3,000 for the first time, while the Nasdaq Composite and Dow Jones Industrial Average also reached all-time highs.
However, the S&P 500 closed back below 3,000, up 0.5% at 2,993.07. The Dow, meanwhile, climbed 76.71 points, or 0.3% at 26,860.20 after rallying nearly 200 points. The Nasdaq ended the day off its session high, but managed a record close at 8,202.53 as Amazon rose 1.5% to break above $2,000 per share.
In corporate news, Tesla shares rose more than 3% on news the company has told employees to prepare for an increase in production.
European stocks edged lower on Wednesday afternoon after U.S. Federal Reserve Chairman Jerome Powell hinted at imminent interest rate cuts in a testimony to Congress. The pan-European Stoxx 600 fell almost 0.2% during afternoon trade, with the vast majority of sectors in negative territory.
In corporate news, Deutsche Bank shares finally got some reprieve Wednesday, climbing nearly 1% by the afternoon. The German lender’s shares had been hit hard since Monday’s commencement of a mass restructuring plan, which will drastically shrink its investment bank and shift focus to its domestic market.
Serbia regional leader in greenfield investments
In 2018, the Western Balkans recorded the largest influx of greenfield direct investments amounting to $9.36 billion, the highest amount since 2003. Despite remaining outside of the EU, the region attracted 147 greenfield FDI projects in 2018, the highest number of investments for six years, according to fDi Markets. Serbia, the largest Western Balkan country by landmass and population, led the region in 2018 with a record $5.98bn invested into 105 greenfield projects.
NBS: June FX reserves at 12.14 bln euros, highest since 2000
National Bank of Serbia (NBS) FX reserves reached the highest level on record (i.e. since 2000) in both gross and net terms, the NBS announced Wednesday. "Gross NBS FX reserves equalled 12,146.1 mln euros, up by 490.5 mln euros compared to May. During the last year (relative to end-June 2018) gross FX reserves gained over billion euros (1,041.7 mln euros) in the very period when the government net repaid almost 1.9 bln euros in foreign currency (1,854 mln euros). This suggests that FX reserves increased on account of other factors, mainly NBS FX interventions in the domestic FX market, i.e. net FX purchases (1,375 mln euro inflow), which is the healthiest way to boost FX reserves.
Serbia to introduce new salary bands in 2020
Serbian Minister of Public Administration and Local Self-Government Branko Ruzic on Wednesday announced that new salary bands would be introduced in 2020 and that fresh talks on the subject would be held with union representatives. "We expect the new salary bands - or salary groups - to be introduced next year, and we will use this year for a new round of talks with unions, which have been invited to reach, in a dialogue with the government and the relevant ministers, the fine nuancing that is required to implement a new salary band system," Ruzic told reporters.
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