Stocks fall as investors remain on edge about trade war and impeachment; European stocks close higher as trade hopes offset US political uncertainty
U.S. stocks finished the week lower after reports that the White House is considering limits on U.S. investment into China, aggravating the protracted trade dispute between the globe’s two largest economies. Trump administration officials are discussing ways to curb U.S. financial exposure in China, including a block of all American investment in the country, a person familiar with the talks told CNBC.
The Dow Jones Industrial Average erased a gain of about 130 points following the report and closed down 70.87 points at 26,820.25. The S&P 500 also reversed all of its morning gains to slide 0.5% to 2,961.79. The Nasdaq Composite dropped 1.1% to finish the day at 7,939.63.
Shares of chipmaker Micron fell more than 11% on Friday, after it reported first-quarter guidance that fell short of analyst expectations, dragging others in the semiconductor space lower in tandem. Micron’s Friday slide was the stock’s worst day on Wall Street since June 2015.
U.S. consumer spending slowed more than expected in August, according to a government report released Friday. Personal consumption expenditures, also known as household spending, edged up an adjusted 0.1% in August from July, when spending rose 0.5%.
European shares traded higher on Friday as cautious optimism returns to markets over the state of U.S.-China trade relations, though gains may remain capped by escalating political uncertainty in the United States. The pan-European Stoxx 600closed provisionally up around 0.42% during trade, with basic resources adding 1.6% to lead gains as the majority of sectors traded in positive territory, while utilities slipped 0.4%.
Gloomy European data was also in focus Friday, as eurozone economic sentiment came in at its weakest since February 2015, sinking from 103.1 in August to 101.7 in September. Consumer confidence in September improved slightly to -6.5 from -7.1 in August, while business climate measures declined to -0.22 in September from +0.12 in August.
In terms of individual stocks, telecoms firm Altice topped the Stoxx 600 in afternoon trade, with shares gaining 5.5% after the company announced on Thursday that it would reduce its share capital by canceling 200 million treasury shares.
Dinar to hit new 2019 high Monday, euro rate at RSD 117.5283
The dinar's official median exchange rate against the euro will be 117.5283 dinars for one euro on Monday - a slight change from Friday, as well as yet another high for the Serbian national currency against the euro zone currency this year, the National Bank of Serbia (NBS) has announced. The NBS bought 45 mln euros on the interbank foreign exchange market to curb major daily exchange rate fluctuations, taking the total purchased since the beginning of the year to 2.235 bln euros, while the total sold is 190 mln euros.
Serbia imports close to 120,000 used cars annually
Serbia imports, on average, about 120,000 used cars each year, while the number of new vehicles is much lower. Experts warn that this will result in Serbia becoming a dump for European cars, which were destined for scrap yards in their respective countries – Zarko Milanovic from the Serbian Chamber of Commerce says. Asked about the value of the used car market in Serbia, Milanovic said that, in 2018, Serbia had imported almost 200 million euro worth of used cars.
Fitch improves Serbian rating to BB+
Rating agency Fithc hiked Serbian rating to BB+, with stable outlook, according to the report from Serbian Ministry of Finance. Decision supported by the fact that the country maintains stable economic policy, aimed towards further strengthening of macro variables and lowering of the country’s public debt, the statement says. We still have no official report from Fitch itself.
Source: Tanjug, Ilirika