Dow closes little changed after rally back from 589-point drop in wild session; European stocks close higher as trade concerns linger, bond yields slide
The Dow Jones Industrial Average recovered the bulk of a nearly 600-point drop on Wednesday as a sharp decline in bond yields stabilized to temper worries over slowing economic growth. The 30-stock index closed 22.45 points lower, or 0.1% at 26,007.07. At its lows of the day, the Dow had fallen more 589.13 points. The S&P 500 eked out a small gain after dropping nearly 2%, climbing 0.1% to 2,883.98. The Nasdaq Composite advanced 0.4% to 7,862.83, led by Apple, after the tech-heavy index fell as much as 1.7%.
In corporate news, Disney shares slid on weaker-than-expected results for the previous quarter. Disney’s results were weighed down by increasing losses in streaming services such as Hulu, ESPN+ and Disney+. The media giant also blamed the integration of Fox’s entertainment assets for the weak numbers. Disney shares closed down 5%.
European stocks closed in positive territory on Wednesday despite tumbling bond yields stoking concerns about a global economic slowdown. The pan-European Stoxx 600 was 0.2% higher at the closing bell, with most sectors and all major bourses in positive territory. Travel and leisure stocks led the gains, while oil and gas stocks tumbled after oil prices plummeted. The banking sector was in focus as the European banking index hit a one-year low following a slew of new financial results. Commerzbank posted a net second-quarter profit of 271 million euros ($303.79 million) which was little changed from the same period a year ago, but exceeded the 217 million euros expected by analysts. The German lender’s shares slid 6.4%.
Italy’s Unicredit posted a sharp rise in second-quarter net profit of 1.85 billion euros, an increase from the 1.02 billion euros posted a year ago, boosted by the sale of its stake in FinecoBank, but coming in below analyst expectations. The bank’s stock was down 5% by the end of the session.
KMBN: Komercijana reports 19.4% jump in 6M net profit on reduction of impairments
Komercijana Banka (KMBN) reported RSD 4.3bn in its 6M19 net profit, up 19.4% y/y, while this is mainly on reduction of impairments of financial assets not recognized at affair value in P&L statement. The bank’s core business grew at a very low rates. Net interest income for the period was up only 1.2% to RSD 6.3bn, while net F&C income was up 1.9% y/y. Credit activity was up 4.8% YTD, while total assets grew 2.7% YTD.
Source: KMBN, Ilirika
Serbia-China trade up by 25.8%
According to the statistics of Chinese side, the China-Serbia trade volume in 2018 totaled 950 million USD, up by 25.8 percent compared with 2017, said Tang Xiaodong, attache for the Economic and Commercial Affairs in the Embassy of China in Belgrade. China's export to Serbia was 730 million USD, up by 33.5 percent; the import from Serbia stood at 730 million USD, up by 25.8 percent, said Xiaodong in the interview he gave to the magazine "Diplomacy&Commerce"
Port Dubai invests 29 million euros in NS port
P&O Port Dubai, which bought the Novi Sad port in May for eight million euros, will invest about 29 million euros in the port company, Prime Minister Ana Brnabic said on Wednesday, adding that the new owner would first invest in the opening of an international passenger transport terminal. The contract was signed today, and Port Dubai, which is, according to Brnabic, a serious company, begins investing.