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
Stocks held steady on Monday as investors looked ahead to a key meeting between President Donald Trump and Chinese President Xi Jinping at this week’s G-20 summit. The Dow Jones Industrial Average closed just 8.41 points higher at 26,727.54, while the S&P 500 slid 0.2% to 2,945.35. The Nasdaq Composite closed 0.3% lower at 8,005.70.
Dow member United Technologies rose 1.1% after an analyst at Cowen upgraded the stock to outperform from market perform. Deere shares, meanwhile, climbed 1.6% after being upgraded to buy from neutral at UBS.
European stocks closed lower Monday as investors continued to monitor geopolitical tensions between the U.S. and Iran, with Washington preparing major new sanctions.
The pan-European Stoxx 600 closed provisionally down 0.3%. Auto stocks led the losses with a 1.2% decline following a Daimler profit warning, while only a handful of sectors traded in positive territory.
Daimler cut its 2019 earnings outlook Sunday after lifting provisions for issues related to its diesel vehicles by hundreds of millions of euros, sending auto stocks lower across the continent. The company’s stock was among the worst performers, down nearly 4%.
Cadez: Growth rate 3.5-4 pct over medium term
A positive trend of economic growth is continuing in Serbia and will be at 3.5-4 pct over the medium term, Chamber of Commerce and Industry of Serbia (PKS) President Marko Cadez said in Belgrade Friday. At the opening of a session of the PKS Board of Directors and the PKS Assembly, Cadez said year-on-year economic growth was 2.5 pct in Q1 2019 and that economic activity was expected to pick up by the end of the year. "The main drivers of economic activity in the current year are more intense investment activity and growth of personal consumption. The number of business entities is rising constantly, along with a growth of turnover and volume in the domestic and international markets," he said.
Announced investment cycle to boost GDP – economists
Serbian President Aleksandar Vucic has announced the launch of a new investment cycle worth up to 10 bln euros. Speaking to Tanjug Monday, economists agreed this would accelerate GDP growth, attract even more foreign investors and reduce unemployment. Foreign Investors Council Vice President Vladislav Lalic said the body believed this was "the correct decision that definitely can have a positive effect on the Serbian economy" and that funds should be directed to road and rail transport projects, real estate and a Belgrade metro system.
Serbia launches sale of Jat Tehnika at starting price of 20.5 mln euro
The Serbian economy ministry on Monday launched the privatisation of aircraft maintenance company Jat Tehnika at a starting price of 20.5 million euro ($23.4 million). The ministry is offering for sale 99.38% of Jat Tehnika, which is in the hands of the government and state funds, it said in a privatisation invitation published on its website. Interested bidders can submit their letters of intent to participate in the process by July 31. The economy ministry will open the letters on August 1. It employs some 1,000 people and offers a broad spectrum of maintenance activities such as aircraft maintenance, engine shop maintenance, Non Destructive Testing, services of engineering department and technical training.