S&P 500 and Nasdaq jump to record highs, Dow climbs more than 100 points; European stocks close higher as investors monitor coronavirus, economic data
The S&P 500 and Nasdaq Composite rose to record highs on Wednesday as tech shares outperformed while investors continued to weigh the coronavirus’ impact on the global economy. The broad index closed 0.5% higher at 3,386.15, breaking above a previous all-time high of 3,385.09, while the Nasdaq climbed nearly 0.9% to 9,817.18. Meanwhile, the Dow Jones Industrial Average was up 115.84 points, or 0.4% to close at 29,348.03.
The Federal Reserve’ released the minutes from its January meeting, showing central bank officials think rates will remain at current levels for the time being. The minutes also reflected the coronavirus was being monitored by the Fed.
In corporate news, Garmin shares shot up more than 6% on the back of better-than-expected earnings.
European stocks closed higher on Wednesday as investors monitor the spread of the new coronavirus and fresh economic data. The pan-European Stoxx 600 closed provisionally up by around 0.8%, having notched a fresh record high earlier in the session. Technology shares led the gains with a 1.4% jump as all sectors and major bourses traded in positive territory.
Deutsche Telekom on Wednesday forecast that growth in its core earnings would slow to 3% this year after a strong fourth quarter. Europe’s largest mobile operator projected adjusted earnings before interest, taxation, depreciation and amortization hit 25.5 billion euros ($27.5 billion), missing analyst expectations. Deutsche Telekom shares gained 4%.
Serbia attracted 55% of FDI into Western Balkans; GDP growth forecast for 2019 revised upwards, NBS says
Gross FDI into Serbia totalled a record 3.8 bln euros in 2019 and in the past two years, Serbia alone attracted 55% of all FDI into the Western Balkans, National Bank of Serbia (NBS) Governor Jorgovanka Tabakovic said Wednesday. At the presentation of the February inflation report, she said the NBS had revised upwards its 2019 GDP growth projection for Serbia to 4.2 pct, which exceeded all the projections released in the course of the year.
Dinar bonds eliminate currency risk
The issuance of 12-year dinar government bonds is major news and a particular benefit for Serbia as it eliminates the currency risk and reduces the sensitivity to fluctuations in international financial markets and to changes of the dinar-to-euro exchange rate, says Zoran Grubisic, professor at the Belgrade Banking Academy. "Borrowing in the domestic currency is a significant possibility and an advantage we have not had in many years," Grubisic told Tanjug after Serbia on Tuesday issued its first 12-year dinar bonds, raising 19.3 bln dinars at a historically low yield rate of 3.4 pct.
KMBN: State can be responsible Komercijalna banka owner
The state can be a responsible owner of Komercijalna banka, National Bank of Serbia Governor Jorgovanka Tabakovic said Wednesday, noting that a decision on a sale of the bank was not hers to make, but up to the state. Tabakovic was speaking at the presentation of the February inflation report. When asked by a reporter to comment on her opposition to a sale, she said this was her opinion and that she was entitled to give it but that she did not expect anyone to change a decision or become angered by her comments.