Dow rallies more than 500 points ; European markets close higher as autos climb 3.2%
Stocks surged on Tuesday, climbing back from a big rout in the past month, after Federal Reserve Chairman Jerome Powell signaled the central bank was open to easing monetary policy to save the economy and as trade tensions eased amid comments by China and Mexico.
The Dow Jones Industrial Average climbed 450 points, or 1.8%. The S&P 500 jumped 1.8% — heading for its biggest one-day gain since Jan. 4 — and the Nasdaq Composite jumped 2.3%. Stocks that have been hit hard during the month-long sell-off led Tuesday’s comeback, including Apple and bank shares.
Republican lawmakers are also discussing whether they may have to vote to stop the new tariffs on Mexican goods threatened by Trump, according to The Washington Post, citing people familiar with the matter. The report said GOP lawmakers are worried about the ramifications for businesses and consumers of the tariffs. Shares of GM and Ford, companies who could take a hit under the new tariffs, rose 5% and 2.9%, respectively.
European stocks rebounded toward the end of Tuesday’s session amid recovering investor sentiment worldwide, with autos emerging as the leading performer with a 3.2% rise. The pan-European Stoxx 600 climbed 0.65%, while technology stocks were one of only a few sectors still in the red with a 0.2% decline.
Shares of French gaming firm Ubisoft fell 3.2% after it was revealed that the Guillemot family company had sold shares worth 14.4 million euros.
Meanwhile, Euro zone inflation fell more than expected last month, adding to worries about weak price pressure and reinforcing the case for more stimulus by the European Central Bank. Inflation in the 19 countries sharing the euro fell to 1.2% in May from 1.7% in April, below expectations of 1.3% and more than reversing a one-off surge related to the timing of Easter. That’s according to Reuters.
Serbia-EAEU trade deal may be signed by end-2019
A free trade agreement between the Eurasian Economic Union (EAEU) and Serbia may be signed by the end of this year, Russian State Duma Chairman Vyacheslav Volodin said in Belgrade Monday. "An EAEU-Serbia agreement on a free trade zone, expected to be signed at the end of the year, would open up the markets of countries with around 180 mln people to Serbian goods," Volodin told a committee on cooperation between the Serbian parliament and the Duma, the lower house of the Russian parliament. The volume of Russian-Serbian trade has risen 3 pct since the beginning of the year, totalling 571 mln dollars in January-March, he said.
NBS: Dinar grows stronger with confidence of important investors
Increased pressure towards the strengthening of the dinar in the local FX market and the domestic currency appreciating over the past several days can be ascribed almost entirely to the rising confidence of foreign investors, who have been increasingly investing in long-term dinar bonds of the Republic of Serbia, NBS said. Over the past several days, non-residents sold significant amounts of FX and bought dinars in order to invest in the government bonds of Serbia which has fully transformed its economic indicators, turning them to a positive direction. This way, investors have shown they are confident that our country’s further development will rest on sustainable economic grounds, the report said
ENHL: Energoprojekt contracted two jobs in Serbia worth EUR 21m
Energoprojekt reported two newly contracted jobs from Serbia, valued at EUR 21m. This is about reconstruction of several major streets in Belgrade. Completion deadline is 120 and 200 working days.
Source: Belex, Iliirka