Dow drops 280 points, giving up big earlier gain after Trump says US adding more tariffs on China; European stocks close higher on strong earnings; Bank of England holds rates
Stocks fell sharply on Thursday, erasing a big surge from earlier in the day, after President Donald Trump said the U.S. would impose an additional 10% tariff on Chinese imports to the U.S.
The Dow Jones Industrial Average closed 280.85 points lower at 26,583.42 after rallying as much as 311 points earlier in the day. The S&P 500 ended the session down 0.9% at 2,953.56 after rallying more than 1%. The Nasdaq Composite closed down 0.8% at 8,111.12 after jumping more than 1.6%.
European stocks traded higher Thursday after strong earnings reversed early losses resulting from a more hawkish tone from the U.S. Federal Reserve. The pan-European Stoxx 600 closed provisionally 0.41% higher, led by a 2.2% gain for financial services stocks.
Societe Generale on Thursday reported a second-quarter net income of 1.05 billion euros ($1.16 billion), surpassing analyst expectations according to Reuters’ estimates. The French bank posted a net income of 1.2 billion euros for the same quarter last year. Societe Generale stock gained 5.7% by afternoon trade.
Royal Dutch Shell’s second quarter profits slumped to a 30-month low due to lower oil and natural gas prices and refining margins, falling far short of forecasts and leading the company’s shares 4.9% lower.
Erste Group Bank will not bid for Komercijalna banka
Austrian Erste Group Bank will take no part in the privatisation of Serbia's Komercijalna banka, the banking concern's CEO Andreas Treichl has announced. Presenting the group's semiannual results at a Vienna press conference, Treichl said Erste would not bid for Komercijalna banka. In Serbia, Erste Group Bank is present through a smaller bank and aims to continue to invest in digital development and staff training in the country, rather than to reinvest in a new branch office network and various IT systems, he said. Despite losing a legal case in Romania - which will result in a 105.8 mln euro write-off - Erste Group Bank has achieved the best results in its history, he said.
Serbian retail trade turnover 11% up y-o-y
According to preliminary figures released by the Serbian national statistical office RZS, the June 2019 retail trade turnover in the country was 11.2 pct up at current prices and 10.1 pct up at constant prices compared to the same month last year. "Comparing the first six months of 2019 with the same period of 2018, retail trade turnover increased by 11.1 pct at current prices, and by 8.5 pct at constant prices," the RZS said in a statement.
Serbian exports 6.7 pct up, imports 9.1 pct up in first half of 2019
Serbia's external trade rose 8 pct to 20.07 bln euros in the period from January to June, with exports 6.7 pct up and imports 9.1 pct up y-o-y. In the first six months of this year, exports stood at 8.58 bln euros, with imports at 11.49 bln euros, the national statistical office RZS said in a statement. The deficit is 2.9 bln euros, which is a 17 pct increase y-o-y and the export-import ratio is 74.7 pct - down from 76.4 pct in the first half of 2018, it said.