Stocks rise, rebounding from steep 2-day sell-off; Europe stocks recover after weak economic data; FTSE still lower after worst day since 2016
Stocks rose on Thursday, recovering some of the losses from a steep two-day sell-off amid increasing expectations that the Federal Reserve will cut rates later this month. The Dow Jones Industrial Average closed 122.42 points higher, or 0.5% at 26,201.04. The S&P 500 gained 0.8% to 2,910.63 while the Nasdaq Composite jumped 1.1% to 7,872.26.
The probability of a rate cut by the Fed this month increased. Expectations for an October rate cut jumped to 93.5% from 77% on Wednesday, according to the CME Group’s FedWatch tool.
European stocks recovered ground late Thursday afternoon even as weak economic data compounded uncertainty arising from the U.S. announcement that it would impose billions of dollars’ worth of tariffs on exports from the European Union. The pan-European Stoxx 600 was 0.01% lower by the close of trade on Thursday.
In terms of individual stocks, France’s Remy Cointreau jumped 6.4% to top the Stoxx 600, while H&M shares also added 53.9% after reporting its first quarterly profit rise in two years. Airbus gained 4.6%.
Fiscal Council: Surplus must be used to spur growth
The 2019 budget surplus of approx. 45 bln dinars should be used to spur economic growth and investment in infrastructure - primarily utility infrastructure - and in environmental protection, Fiscal Council representatives said Thursday. The Council recommends that around 20 bln dinars of available funds be used to reduce the tax burden on labour and that the remaining 25-30 bln go to infrastructure and environmental protection. Speaking at a press conference, the Council's President Pavle Petrovic said insufficient growth was the biggest problem of the Serbian economy, being below the required level.
Serbian retail trade turnover 10.9 pct up in January-August
In the period from January to late August, Serbian retail trade turnover rose 10.9 pct at current prices y-o-y and 8.7 pct at constant prices y-o-y, the national statistical office RZS has said. "According to the preliminary results, the turnover of retail trade in the Republic of Serbia in August 2019, compared to August 2018, increased by 8.3 pct at current prices and by 7.6 pct at constant prices," the RZS said in a statement.
IMF mission in Belgrade to review advisory arrangement
An International Monetary Fund (IMF) mission headed by Jan Kees Martijn will be in Belgrade to October 15 to review the results of the advisory arrangement with Serbia and consider future activities, the Serbian Finance Ministry said on Thursday. The IMF approved the Policy Coordination Instrument (PCI) for a period of 30 months in July 2018. The instrument does not include financial support and is directed towards structural reforms. The IMF mission is scheduled to meet Finance Minister Sinisa Mali on Friday and has plans to meet with officials in other ministries over the next few days.