Dow surges more than 350 points on hopes for a China trade deal and an easy Fed; European stocks close higher following Draghi speech; Stoxx 600 hits one-month high
Stocks surged on Tuesday as Wall Street increased bets on a U.S.-China trade deal after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit. Sentiment was also lifted by hope that the Fed will ease monetary policy later this year. The Dow Jones Industrial Average jumped 353.01 points to 26,465.54 as 3M and Boeing outperformed. The S&P 500 climbed 1% to 2,917.75 while the Nasdaq Composite advanced 1.4% 7,953.88. The S&P 500 also closed 1.2% from its all-time intraday high of 2,954.13, which was reached May 1.
Boeing and Caterpillar shares, two trade bellwethers, rose 5.4% and 2.4%, respectively. Deere shares also gained more than 3%. Semiconductor stocks jumped on Trump’s tweet.
European stocks closed sharply higher on Tuesday, after ECB President Mario Draghi suggested in a speech that the central bank will provide more stimulus — either through new rate cuts or asset purchases — if inflation does not pick up.
The pan-European Stoxx 600 recovered from an early drop to end the session 1.8% higher, marking a one-month high. All sectors and major bourses were in positive territory, with basic resources leading the gains and surging by almost 3%.
Looking at individual stocks, shares of German chipmaker Infineon fell 2% on Tuesday, as the company launched an accelerated capital increase to raise 1.5 billion euros ($1.68 billion) toward its planned acquisition of Cypress Semiconductor.
Serbian President met with Naftna Industrija Srbije (NIS) CEO Kirill Tyurdenev
Serbian President Aleksandar Vucic on Tuesday met with Naftna Industrija Srbije (NIS) CEO Kirill Tyurdenev to discuss the oil company's significance for the overall Serbian economy. According to a statement from the presidential press office, Vucic highlighted NIS's contribution to the national budget as it brought 1.3 bln euros of tax revenues to the state coffers in 2018 alone. Among the subjects discussed was the possibility of NIS participating in a tender to select a strategic partner for the Pancevo petrochemical plant. The Serbian government is expected to launch the tender in the last quarter of 2019
Serbia's MK Group to build 8.1 mln euro biomass-fired power plant
Serbian diversified conglomerate MK Group said on Monday that it plans to invest 8.1 million euro ($9.1 million) in the construction of a biomass-fired power plant in Vrbas, in the northern part of the country. MK Group intends to start construction works on the project in September and launch the power plant in February 2020, the diversified group said in an e-mailed statement.
Siemens Austria Mobility CEE says it pays off to invest in Serbia
Siemens Austria Mobility CEE Arnulf Wolfram, who took part in the conference of Financial Times and the Western Balkans Chamber Investment Forum, pointed out that investments in the region, especially in Serbia, paid off. Wolfram also said that Siemens and the region were connected by a 150-year history. We see a large economic growth in the region, as a company from the field of infrastructure. This sort of development can be useful if it is connected with local investments – he said.