Daily Report 01.08.2019
Datum objave: 01.08.2019
Dow drops 250 points after Powell hints rate cut not the start of a trend; European stocks close higher as investors await Fed decision
Stocks dropped on Wednesday as Federal Reserve Chair Jerome Powell dampened hopes for further rate cuts later this year. The Dow Jones Industrial Average traded 250 points lower after falling as much as 478 points at one point. The S&P 500 and Nasdaq Composite both dropped 0.7%. The Fed cut rates by 25 basis points, matching market expectations. The central bank cited “global developments ” along with “muted inflation” as reasons for easing monetary conditions.
Apple reported Tuesday evening earnings per share and revenue for the previous quarter that topped analyst expectations, sending the stock up 5% on Wednesday. The company also issued better-than-expected revenue guidance for the fourth quarter.
European stocks closed higher Wednesday as investors awaited an interest rate decision from the U.S. Federal Reserve. The pan-European Stoxx 600 climbed 0.2%, with the majority of sectors and major bourses in positive territory. The FTSE 100 in London was the outlier in Europe, slipping 0.6% as the pound moved away from recent lows.
Earnings remain in focus as a slew of major European corporates reported results Wednesday. Credit Suisse reported a net income of 937 million Swiss Francs ($945 million) for the second-quarter of this year, beating expectations. The bank’s shares climbed more than 2%.
Air France KLM shares traded more than 8% higher after its second-quarter earnings and the announcement that members of its pilots’ union had voted in favor of the development of a new low cost airline, Transavia France.
Share of NPLs reduced to 5.21%
The share of NPLs in total loans in the Serbian banking sector was reduced to 5.21 pct at the end of June, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said Wednesday. It is the lowest level of NPLs since monitoring of the indicator began, Tabakovic told a press conference, adding that the share of NPLs had been at 5.4 pct in May. Gross foreign exchange reserves reached 12.1 bln euros at the end of June while net reserves stood at over 10 bln euros - their highest level since monitoring began, she said at the presentation of the central bank's 2018 annual report on the stability of the financial system.
Serbian industrial output 6.1 pct down in June
Serbian industrial output was 6.1 pct down in June compared to the same month last year, the national statistical office RZS said in a statement Wednesday. The June industrial output was 2.5 pct down compared to the 2018 average. The largest impact on the fall of industrial production in June 2019 compared to June 2018 came from the divisions of production of refined petroleum products, production of food products, manufacture of machinery and equipment n.e.c., production of beverages and printing and reproduction of recorded media, the RZS said.
NBS has no need to take IMF advice
National Bank of Serbia Governor Jorgovanka Tabakovic on Wednesday said that, considering the stability of the national currency and the citizens' confidence in it, there was no reason to take an IMF advice to allow greater fluctuations of the dinar exchange rate. When asked by a reporter to comment on an IMF recommendation to allow slightly higher fluctuations of the exchange rate in both directions, she said the central bank would take advice from any international financial institution, including the IMF, if there were reasons for that.
Daily Report 23.07.2019
23.07.2019 | Stocks rise on hopes for better-than-expected earnings from key tech companies like Amazon, Facebook; European stocks close mixed as investors monitor earnings; Philips shares up 5%; Foreign investments in Serbia 14% up in first six months of 2019; IMF: Price of electricity should be increased at least by the amount of inflation; Serbia third-largest foreign investor in Bosnia and Herzegovina
Daily Report 22.07.2019
22.07.2019 | Stocks fall, S&P 500 and Nasdaq post worst week since late May; European stocks close slightly higher as investors await Fed rate decision; NBS: Inflation expectations still inside targeted range; IMF Completes Second Review of Serbia’s Economic Performance under PCI and Concludes Article IV Consultation with the Republic of Serbia for 2019; Value of mobile banking transactions rises over 100-fold since 2013
Daily Report 18.07.2019
18.07.2019 | Dow drops 115 points as stocks fall for a second day on concern about earnings; European stocks close lower as trade concerns weigh; Ericsson down 11%; Serbian companies generate highest revenues in region; Construction of Belgrade metro could begin in second half of 2020.; Dinar to remain steady, euro rate at RSD 117.7389
Daily Report 17.07.2019
17.07.2019 | Stocks slip from record highs after Trump says ‘long way to go’ on trade talks with China; European stocks close higher as investors monitor earnings; EUR 50 million to be provided for upgrade of water supply systems in Serbia; The assembly of Fiat 500L in Kragujevac is stopped; Serbian export grew 8.2% in 2018, while import jumped 13% y/y
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