Dow notches 8-day winning streak, nears record on growing optimism around US-China trade; European stocks close higher after aggressive ECB stimulus; banks up 2%
The Dow Jones Industrial Average rose on Friday, posting its first eight-day winning streak in more than a year, amid improving sentiment around U.S.-China trade relations. The 30-stock index closed 37.07 points higher, or 0.1% at 27,219.52. The S&P 500 and Nasdaq Composite struggled, however. The S&P 500 slipped 0.1% to 3,007.39. The Nasdaq ended the day down 0.2% at 8,176.71.
On the data front, consumer sentiment for September topped expectations as consumers felt better about the economy. However, worries over the trade war increased.
European stocks edged higher on Friday afternoon after the European Central Bank (ECB) delivered an aggressive stimulus package in a bid to reinvigorate the ailing euro zone economy. The pan-European Stoxx 600 closed 0.4% higher, banks and basic resources emerging as the best performing sectors with roughly 2.8% in gains while food and beverage stocks dropped 1.9%.
In corporate news, the London Stock Exchange (LSE) board will meet in the coming days to decide on the Hong Kong stock exchange’s surprise $36.6 billion takeover proposal, according to Reuters.
Declining industrial output in eurozone affecting Serbia
The Serbian economy is quite affected by a decline of industrial output in Europe's strongest economies, but experts believe countries like Serbia can respond by strengthening local companies, forging more ties with third-country markets, boosting regional cooperation and introducing austerity measures. Bojan Stanic from the Chamber of Commerce and Industry of Serbia says the Serbian economy is open and highly dependent on trade with the main partners in the eurozone, most notably Germany and Italy.
Gov't sets 2020 minimum monthly wage at 30,022 dinars
The Serbian government on Friday adopted a decision under which the minimum net hourly wage for January-December 2020 will be 172.54 dinars. "With an 11.1 pct increase, the minimum monthly wage will be 30,022 dinars, compared to the present 27,022 dinars. Along with planned tax reliefs for employers, this highest-ever increase, which takes effect on January 1 next year, will help to improve the living standards of the citizens and the country's economy," said an official statement released after a government session.
EBRD to credit small and medium companies in Serbia with EUR 160 million
The European Bank for Reconstruction and Development (EBRD) has secured EUR 160 million for the financing of small and medium enterprises (SMEs) and support to the citizens of Serbia. The financial package will be realized through the credit offer of UniCredit Bank Serbia, the EBRD says in a press release sent to Tanjug. The credit line of EUR 100 million, which also entails loans in dinars (in the amount of EUR 35 million) is meant for SMEs for the purpose of improving their access to finance, improving their competitiveness in the local and the international market and increasing the use of the domestic currency.