Dow rallies 200 points as stocks surge for a second day on hope the Fed will cut rates; European stocks close mostly higher; Italian banks fall on EU ruling
Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles. The Dow Jones Industrial Average rose 165 points, while the S&P 500 advanced 0.6%. The Nasdaq Composite traded 0.3% higher. The Dow surged more than 500 points on Tuesday after Fed Chair Jerome Powell opened the door to rate cuts.
Tech shares jumped 1% while the utilities and real estate sectors got a boost from lower rates. Apple contributed to tech’s gains, rising 1.5% after CEO Tim Cook said the company had not been targeted by China amid rising U.S.-China trade fears. Salesforce, meanwhile, rose 3.6% on stronger than expected earnings.
European stocks closed mostly higher Wednesday but the rally lost steam after the EU ruled Italy was in breach of fiscal rules. The pan-European Stoxx 600 closed provisionally up 0.3%, with utilities stocks making a nearly 1.3% gain while banks were one of a handful of sectors to fall into the red, slipping 0.5%.
China Railway International seeking subcontractors for works on Belgrade Center-Stara Pazova section
Within the project of modernization and reconstruction of the Belgrade-Subotica high-speed railway, the Serbian branch of China Railway International opened 4 tendering procedures for subcontractors for works on the Belgrade Center-Stara Pazova section. As stated in the documentation, the first tender entails architectural works on pedestrian underpasses in Zemun, Batajnica, Nova Pazova and Stara Pazova, drainage works, thermomechanical installations and fire suppression, roads traffic signalization and construction of platforms. The second tender pertains to substructure works and relocation and protection of telecommunication network.
World Bank retains 3.5% growth projection for Serbia
In its June Global Economic Prospects report, the World Bank has retained a 3.5% GDP growth forecast for Serbia for 2019 and a 4 pct growth forecast for the next two years. Global growth in 2019 has been downgraded to 2.6 pct, 0.3 percentage point below previous forecasts, reflecting weaker-than expected international trade and investment at the start of the year. Growth is projected to gradually rise to 2.8 pct by 2021, predicated on continued benign global financing conditions, as well as a modest recovery in emerging market and developing economies previously affected by financial market pressure.
PepsiCo confirms it will acquire Knjaz Milos with KMV
PepsiCo Inc, a global food and beverage producer that operates in over 200 countries and territories worldwide, on Wednesday confirmed it would acquire a 100 pct stake in the Serbian company Knjaz Milos with Karlovarske Mineralni Vody (KMV), the Czech Republic's largest non-alcoholic drinks distributor. A PepsiCo statement said the transaction included a purchase of Knjaz Milos production capacities in Serbia and well-positioned brands such as Knjaz Milos, Aqua Viva, Guarana, ReMix, Gusto and others. The transaction is due to be completed in Q3 2019, pending approval from the antimonopoly commissions of Serbia and Montenegro.