Daily Report 28.08.2019
Datum objave: 28.08.2019
Dow drops more than 100 points as bond-market recession indicator, trade worries worsen; European stocks close mostly higher as China considers relaxing auto restrictions
The Dow Jones Industrial Average more than erased a 155-point rally on Tuesday as a recession indicator from the bond market worsened and fears around the U.S.-China trade war weighed on equity trading. The Dow traded 83 points lower in afternoon trading, well off its highs north of 150 points hit earlier in the session. The S&P 500 fell 0.2% while the Nasdaq Composite dropped 0.25% amid losses in Netflix, Nvidia and T-Mobile.
The spread between the 10-year Treasury yield and the 2-year rate fell to negative 5 basis points, its lowest level since 2007. This is called a yield-curve inversion. Experts fear it because in the past it has preceded recessionary periods. The 3-month Treasury bill rate also traded higher than the 30-year bond yield.
Johnson & Johnson shares rose 1.9% after the company was forced to pay $572 million in an opioid case in Oklahoma. The fine was much less than what prosecutors were looking for.
European shares reversed course to close higher Tuesday after China’s State Council announced that it is considering relaxing and removing restrictions on auto purchases as part of a broad move to boost consumption. The pan-European Stoxx 600 finished 0.5% higher provisionally, with auto stocks receiving a boost from the Chinese announcement as almost every sector closed in positive territory. China also said it will encourage credit support for purchases of new energy vehicles and smart home appliances.
As for data, German GDP (gross domestic product) data showed Europe’s largest economy contracted on weaker exports in the second quarter, as trade disputes and waning foreign demand continued to weigh.
FDI into Serbia rises 31% y/y in H1
The inflow of foreign direct investment (FDI) into Serbia rose 31% on the year to 1.9 billion euro ($2.1 billion) in the first half of 2019, finance minister Sinisa Mali has said. “We are advancing at double-digit rates. The Financial Times confirmed that we are record-holders in terms of FDI inflow, this trend is continuing and there is no reason why this year we will not be champions too,” Mali said in a video file posted on the YouTube channel of private TV broadcaster Pink last week.
Bechtel-Enca consortium only bidder for construction of Morava Corridor
Only one bid, made by the Bechtel-Enca consortium, was sent in response to the public call for the selection of a strategic partner for the construction of the Morava Corridor. As said in a statement by the Ministry of Construction, Transport and Infrastructure, the task force for the selection of a strategic partner for the realization of the project of the construction of the infrastructural corridor of the E-761 highway, Pojate-Preljina section (the Morava Corridor), presided over by Minister Zorana Mihajlovic, has held its second session, during which the bids were opened.
Serbian June’s average net salary 53,633 dinars, 7.4% up
The average net monthly salary in Serbia was 53,633 dinars in June, rising 9 pct in nominal and 7.4 pct in real terms compared to the same month last year, the national statistical office RZS has announced in a statement. The June average gross salary was 74,009 dinars, rising 8.8 pct in nominal and 7.2 pct in real terms y-o-y.
Daily Report 20.09.2019
20.09.2019 | S&P 500 closes flat, hovering near record high; European markets close higher amid Fed easing; Bank of England holds rates; Serbian GDP up 4.4% in July; EIB ready to fund projects in Serbia's new investment cycle; FINT: Serbia's renewable energy sources potential totals 50,000 GWh
Daily Report 19.09.2019
19.09.2019 | Stocks close flat as Fed fails to clearly signal more rate cuts in 2019; European markets close slightly higher ahead of Fed rate decision; Serbian businessman possible mystery buyer of Kras shares – paper; German SMEs coming to Serbia; Botsan-Kharchenko: Good news about TurkStream
Daily Report 18.09.2019
18.09.2019 | Stocks rise slightly ahead of the Fed’s decision on interest rates; European stocks close slightly lower as oil plummets; Fed meeting in focus; NIS stocks rise on BELEX following dividend payout; China's Huawei eyes development of data centre in Serbia; Countercyclical buffer rate for the Republic of Serbia kept unchanged
Daily Report 17.09.2019
17.09.2019 | Dow snaps 8-day winning streak on fears spiking oil will slow the global economy; European stocks close lower amid geopolitical tensions; oil shares spike 3%; KMBN: Privatization of Komercijana attracted three banks and one fund; 120 mln euros of budget funds for Morava Corridor; As early as of December, the average salary will amount to 500 euros"
Daily Report 16.09.2019
16.09.2019 | Dow notches 8-day winning streak, nears record on growing optimism around US-China trade; European stocks close higher after aggressive ECB stimulus; banks up 2%; Declining industrial output in eurozone affecting Serbia; Gov't sets 2020 minimum monthly wage at 30,022 dinars; EBRD to credit small and medium companies in Serbia with EUR 160 million
Daily Report 13.09.2019
13.09.2019 | Dow posts 7-day winning streak, inches closer to record after tariff delay and ECB rate cut; European stocks close higher as ECB launches new stimulus plan; NBS: Key policy rate kept on hold; SORS: Annual inflation in august at 1.3%; Agreement worth EUR 100 million signed with EIB on construction of Nis-Merdare highway
Daily Report 12.09.2019
12.09.2019 | Dow jumps more than 200 points, closes above 27,000 for the first time since July; European stocks close higher ahead of central bank meetings; NBS: FX reserves in August at EUR 13bn; Serbia, Czech Republic sign agreements on cooperation; Talks underway about Czech company coming to Serbia
Daily Report 11.09.2019
11.09.2019 | Stocks close little changed as tech shares and Ford weigh on the market; European stocks erase earlier losses to close slightly higher; KMBN: Bids for sale of shares of Komercijalna Banka opened – Second selection phase in November; Minimum wage in Serbia to be RSD 30,022 from 2020; Serbia attracts 1.9 bln € worth of FDI in first half of 2019
Daily Report 10.09.2019
10.09.2019 | Dow posts 4-day winning streak amid trade optimism; European stocks close mainly lower as investors eye Brexit battle and stimulus hopes; Agreement on construction of Nis-Pristina highway to be signed on Thursday – Construction of section to Plocnik to begin in 2020; China's Zijin Mining Co to build new plant in Majdanpek; NIS to payout cash dividend on 16th September
Daily Report 09.09.2019
09.09.2019 | Stocks close little changed after disappointing jobs report, but rise for a second straight week; Europe closes higher as investors monitor Brexit uncertainty; KMBN: Serbia to buy Komercijalna banka shares owned by EBRD, IFC - four non-binding bids had been received; Moody’s Upgrades Serbia’s Rating Outlook; Mali, Petrovic discuss draft 2020 budget