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 23.08.2019
23.08.2019 | Dow rises slightly ahead of big speech from the Fed chief; European stocks close lower amid recession fears; investors await Fed clarity; MTLC: Metalac reports 6% higher consolidated 6M19 sales, while net profit drops 6.5% y/y; Serbia, EAEU to sign free trade deal on October 25 - Russian ambassador; Serbia's Sojaprotein says backs Victoria Group buyout bid
Daily Report 22.08.2019
22.08.2019 | Dow jumps more than 200 points, Target and Lowe's surge on strong earnings; European stocks close higher as investors await Fed minutes; Government plans to reduce tax burden on wages; Agreement with CRBC on construction of Fruska Gora Corridor to be signed by Spring 2020; Knjaz Milos acquired by Mattoni 1873, PepsiCo
Daily Report 20.08.2019
20.08.2019 | Dow rallies more than 200 points as Wall Street continues rebound from August sell-off; European stocks close higher as policy stimulus hopes grow; Greene King up 51%; New motorways could attract investors to southwestern Serbia; Almost 85% of new factories opened along Corridor 10; MTLC: Metalac to report consolidated 6M numbers on Thursday, 22th August
Daily Report 19.08.2019
19.08.2019 | Dow rallies 300 points to end another wild week on Wall Street; European stocks close higher, ending a volatile week for global equity markets; ENHL: Energoprojekt 115. on the list of largest design companies; The pipeline pushed the value of June's building permits; Dinar against the euro 117.77 today
Daily Report 16.08.2019
16.08.2019 | Dow rises 99 points led by Walmart, rebounding from worst day of 2019; European stocks close lower in choppy session; ENHL: Energoprojekt reported improved financial performances for 6M 2019; MTLC: Metalac reported non-consolidated numbers, suggesting low single digit growth in 2019 is most realistic; JESV: Jedinstvo posted jump in sales&net profit in 6M19 period
Daily Report 15.08.2019
15.08.2019 | Dow tanks 800 points in worst day of 2019 after bond market sends recession warning; European stocks close sharply lower on weak data, bond market recession warnings; FITO: Galenika Fitofarmacija made 1.1 billion dinars net profit in 1H19, down 9.8% y/y; PLNN: Planinka buys Kursumlijska Spa – Grand opening by end of 2020, necessary investments exceed EUR 10 million; NBS: Inflation remains stable at about 2.0% next two years
Daily Report 14.08.2019
14.08.2019 | Stocks jump led by Apple after US delays some China tariffs; European stocks close higher as US delays China tariffs on phones and clothing; Serbia takes first place in greenfield direct foreign investments globally; Fiat to manufacture seven-seater SUV based on "tipo" model in Kragujevac; Victoria offers RSD 180 per share for remaining stake at Sojaprotein
Daily Report 13.08.2019
13.08.2019 | Dow drops 390 points and slips back below 26,000 as bond yields decline; European stocks close lower amid trade war worries; Tullow Oil up 20%; NBS: FX reserves at EUR 12.7bn in July; NBS: Annual inflation in July at 1.6%; EUR 12 billion for investment plan, investments to be made in utility, transport, energy digital infrastructure and tourism
Daily Report 12.08.2019
12.08.2019 | Stocks fall on renewed trade war fears as Wall Street concludes volatile week; European stocks close lower as Italian banks plunge on political turmoil; Autos down 2.5%; Dinar to hit record high on Monday at 117, 6809 for one €; Talks on Belgrade-Bar railroad with Montenegro; Government again gives 21 million euro to Air Serbia
Daily Report 09.08.2019
09.08.2019 | Stocks rally, pushing S&P 500 into positive territory for the wild week; European stocks close higher as sharp fall in global bond yields stabilizes; Serbia's c-bank cuts key repo rate to 2.5%; Turnover through instant payments in July RSD 8 billion; Investment cycle to result in 5% GDP growth