Dow jumps 300 points as Wall Street rebounds from worst day of the year; European stocks close lower after China strengthens currency, easing trade retaliation
Stocks rebounded on Tuesday from their worst day of the year after China’s central bank indicated it plans to keep its currency at a level stronger than some investors had first feared, easing tensions about the nation using the yuan as a weapon in the trade war.
The Dow Jones Industrial Average closed 311.78 points higher at 26,029.52. The S&P 500 rose 1.3% to 2,881.77, while the Nasdaq Composite climbed nearly 1.4% to 7,833.27. Tuesday’s gains helped the Dow snap a five-day losing streak, while the S&P 500 and Nasdaq rose for the first time in seven sessions.
European stocks closed lower on Tuesday after China’s central bank set the yuan’s official reference point at a stronger than expected level, easing its retaliation to U.S. tariffs, while rejecting Washington’s designation of Beijing as a “currency manipulator.”
The pan-European Stoxx 600 was 0.4% lower during afternoon trade, with household goods stocks — which covers the China-exposed luxury sector — leading the gains. Luxury brands LVMH, Christian Dior and Hugo Boss all saw their shares cross into positive territory.
In corporate news, German postal giant Deutsche Post raised its 2019 forecast after restructuring measures and a rise in German postage and parcel prices. The group reported a rise in operating profit of 2.9% to 769 million euros ($861.55 million), surpassing the 727 million average forecasts from analysts polled by Reuters. Deutsche Post stock traded 3.5% higher midway through the afternoon session.
Dinar to hit new high against euro, rate at RSD 117.7187
On Wednesday the dinar will stay at approximately the same level as Tuesday and the official median exchange rate against the euro will be 117.7187 dinars, which is the new high against the single currency this year, the National Bank of Serbia announced. The dinar will rise 0.1 pct against the euro m-o-m, 0.3 pct y-o-y and 0.4 pct compared to the beginning of the year. The indicative exchange rate against the dollar has dropped Tuesday 0.3 pct at 105,3505 dinars for one dollar. The dinar dropped 0.9 pct against the dollar m-o-m, declining 3.1 pct y-o-y and 1.9 pct since the beginning of the year.
Strong growth in the value of Komercijalna Banka's shares
Trading on the Belgrade Stock Exchange has fallen sharply yesterday, while BELEX indexes have taken off, primarily due to strong growth in the value of Komercijalna Banka's shares. Total trading turnover amounted to only 2.0 million dinars (17.4 thousand euros). The BELEX15 index recorded a large gain of 3.4 percent, closing the day at 763.78 points. BELEXline climbed to 1.581,26 points, up 1.8 percent from Monday. Komercijalna Banka dominated the stock market both in terms of turnover and price growth. The common stock of this banking house jumped by a fantastic 15.9 percent to 3,478 dinars and was traded for almost 0.9 million dinars.
Turnover through instant payments in July RSD 8 billion
The value of turnover through the National Bank of Serbia's instant payment reached RSD 8 billion in July. The average daily value of turnout through IPS was 260 million dinars, the Central Bank announced. The average daily payment number was 15,599, with an average transaction execution time of 1.1 seconds. Via this system, which operates in 24 hours 365 days a year, 483,565 payments were made in 31 days in July.