Stocks fall on renewed trade war fears as Wall Street concludes volatile week; European stocks close lower as Italian banks plunge on political turmoil; Autos down 2.5%
Stocks fell on Friday as Wall Street concluded a wild week amid trade war fears and worries over the global economy. The Dow Jones Industrial Average closed 90.75 points lower, or 0.3% at 26,287.44. The S&P 500 dipped 0.7% to 2,918.65 while the Nasdaq Composite pulled back 1% to 7,959.14.
President Donald Trump told reporters on Friday the U.S. is not ready to strike a trade deal with China. “China wants to do something, but I’m not doing anything yet,” Trump said. “Twenty-five years of abuse. I’m not ready so fast.”
Traders also kept a close eye on the bond market, where the recent appetite for U.S. debt has pushed a bond market recession indicator close to a warning zone. If investors trigger a recession warning in the bond market that tends to be negative for stocks.
European stocks closed lower on Friday as investors monitored trade war developments and a possible collapse of the Italian government. The pan-European Stoxx 600 was provisionally 0.9% lower at the closing bell, with most sectors and major bourses in the red. talian bank stocks plunged, with Banco BPM shares tumbling 9%, while Unicredit and Ubi Banca fell by 5% and 8% respectively.
Dinar to hit record high on Monday at 117, 6809 for one €
The Serbian dinar's official median exchange rate against the euro will be 117, 6809 dinars for one euro Monday August 11, which is a slight change from Friday and a new record high this year, the National Bank of Serbia (NBS) has announced in a statement. The NBS bought 30 million euros in the interbank foreign exchange market to alleviate excessive daily fluctuations in the exchange rate, raising the total amount it has bought since the beginning of this year to 1.79 billion euros, while selling 130 million.
Talks on Belgrade-Bar railroad with Montenegro
Serbian President Aleksandar Vucic on Friday announced talks with Montenegro on plans to modernize Belgrade-Bar railroad. Vucic said that the Montenegrin side will do its part on the project, and that Serbia will provide money from the 10 billion investment plan. Asked what the plans for the Belgrade-Bar railroad are, the President said that the Russians on the 210-kilometer-long Valjevo-Vrbica project and that the Resnik-Valjevo railway was being reconstructed. After its completion in seven, eight or ten months, what remains is to find the money within the 10 billion investment plan, to merge these rail lines with Montenegro.
Government again gives 21 million euro to Air Serbia
Air Serbia’s financial report for 2018 shows that the Serbian government has paid it 21 million euros to the airline in subsidies and donations. Prime Minister Ana Brnabic explains that the money was used to cover the former national air carrier JAT’s debts which is shown in the report as subsidies. Last and the year before last, the Serbian government disbursed nearly 21 million euros in grants, subsidies and donations to Air Serbia, which was shown in the financial sheets as the airline-‘s income.