Dow drops more than 300 points after weakest manufacturing reading in 10 years; European markets close lower following weak manufacturing data
Stocks dropped on Tuesday, the first trading day of the fourth quarter, as disappointing manufacturing data stoked worries over the U.S. economy. The Dow Jones Industrial Average closed 343.79 points lower, or 1.3% at 26,573.04 after rallying more than 100 points earlier in the day. The S&P 500 slid 1.2% close at 2,940.25. The Nasdaq Composite was down 1.1% at 7,908.68.
In corporate news, Charles Schwab shares dropped nearly 10% after the brokerage said it’s ending commissions on stock trading. TD Ameritrade plunged more than 20% on the news while E-Trade slid 16.4%.
The pan-European Stoxx 600 was provisionally down 1.2% at the closing bell, financial services falling 1.6% to lead losses while every sector and all major bourses were in the red.
The final reading of Purchasing Managers Index (PMI) manufacturing data for the euro zone in September came in at 45.7, 0.1 higher than the flash estimate but still hitting its lowest level since October 2012. Final new orders came in at 43.4, again better than the flash estimate but also the lowest since October 2012. Germany led the bloc’s weakness, its PMI coming in at 41.7.
Serbian Deposit Insurance Agency to sell EUR 1.82bn NPL package
Serbian Finance Minister Sinisa Mali says the announced sale of a second package of non-performing loans will successfully solve the long-time issue of bankrupt banks. The Serbian Deposit Insurance Agency on Monday published an ad to assign a 1.82 bln euro portfolio of receivables of eight bankrupt banks in exchange for compensation by public collection offers. He said 240 mln euros worth of NPLs from the first package had been sold in June in the first such transaction in 18 years.
Two bids made for IMR – More valuable one, worth RSD 1.1 billion, to be decided on by board of creditors
A bid worth RSD 1.1 billion has been made for AD Industrija motora Rakovica (IMR) in bankruptcy, which is being sold as a legal entity, the Bankruptcy Supervision Agency announced. Two bids were made for IMR, which is evaluated at RSD 2.9 billion, and the higher one, worth RSD 1.1 billion, was made by the consortium of Institut za izgradnju grada doo and Hempro ad, both based in Belgrade. As the offer amounts to under 50% of the estimated value, the board of creditors will have to decide on it.
NBS, SORS: Import keeps climbing faster vs export in 8 months 2019
According to the Statistical Office data, euro-denominated export of goods increased in August by 4.1% y-o-y, while import decreased by 3.0%. In the period January–August this year, relative to the same period last year, the export of goods expanded by 6.9%, as a result of the rising manufacturing and agricultural product exports (6.2% and 22.7%, respectively). In the same period, the import of goods grew 8.7%, around two-thirds of this growth relating to the import of equipment and intermediate goods for investment and industry purposes.