Dow drops 300 points as optimism around US-China trade talks dims; European stocks close lower on waning hopes around US-China trade talks
Stocks fell sharply on Tuesday as investor optimism around the upcoming U.S.-China trade talks faded. The Dow Jones Industrial Average closed 313.98 points lower, or 1.2% at 26164.04. The S&P 500 slid 1.6% to 2,893.06 while the Nasdaq Composite dropped 1.7% to 7,823.78.
The U.S. expanded its trade blacklist to include some of China’s top artificial intelligence firms on Monday, punishing Beijing for its treatment of predominantly Muslim ethnic minorities.
On the data front, U.S. producer prices posted their biggest drop in eight months in September, dragged down by lower costs for goods and services.
European markets fell Tuesday as hopes dimmed for a positive result in high-level trade talks between the U.S. and China. The pan-European Stoxx 600 provisionally fell 0.97% by the close with construction, retail and travel stocks plunging more than 1.7% as all sectors and major bourses traded in the red.
Hong Kong’s stock exchange on Tuesday abandoned its $39 billion bid for the London Stock Exchange Group (LSE) after failing to win over the LSE board. LSE shares were down nearly 6%.
Serbia needs 5 pct growth, more domestic investments
Serbia needs a 5 pct annual growth of GDP and must boost domestic investments, which can only be accomplished by ensuring equal market conditions to all companies and through compliance with laws and procedures, participants of the 19th Serbian Economic Summit said in Belgrade Monday. Serbian Association of Economists President Aleksandar Vlahovic told Tanjug "investments and exports, rather than spending and imports, must be the key contributions to growth."
Development of the Serbian economy depends on many factors - primarily on the inflow of funds and investments, as well as on the quality of the labour force in the country, said ITM Group President Toplica Spasojevic, urging greater efforts to boost the growth rate.
Industrial zone near Belgrade to boost economic ties with Turkey
Chamber of Commerce and Industry of Serbia (PKS) President Marko Cadez and President of the Foreign Economic Relations Board of Turkey Nail Olpak on Monday said the opening of a Turkish industrial zone near Belgrade would give a completely new impetus to bilateral economic ties. "We are working on getting a large industrial zone with 16 factories from Istanbul to the vicinity of Belgrade. I hope this will materialise very quickly, the preconditions are there, there is political will," Cadez said at a Serbia-Turkey business forum hosted by the PKS.
World Bank lowers Western Balkans 2019 GDP growth forecast
The World Bank said on Tuesday it has lowered its forecast for the Western Balkans’ economic growth in 2019 to 3.2% from 3.5% predicted in April. “Economic activity is slowing in the Western Balkans, as investments and exports continue to fade in the six countries around the region,” the World Bank said in a press release, following the presentation of its latest semiannual Western Balkans regular economic report, fall 2019. Economic growth in the Western Balkans accelerated to 3.9% in 2018 from 2.6% in 2017. The World Bank noted that while the regional economy is forecast to grow in 2020 and 2021, it will remain slightly below the ten-year high of 2018.