Dow rises more than 250 points, energy shares get a boost from oil prices; Europe stocks close lower
Stocks rose on Wednesday as the energy sector got a lift from higher oil prices, but sentiment was kept in check with a key part of the U.S. yield curve inverting even further, exacerbating fears of an impending recession. The Dow Jones Industrial Average closed 258.20 points higher, or 1% at 26,036.10. The S&P 500 climbed 0.7% to 2,887.94 while the Nasdaq Composite advanced 0.4% to end the day at 7,856.88. Chevron and Exxon Mobil contributed to the Dow’s gains, rising 0.8% and 0.7%, respectively.
The S&P 500 energy sector jumped 1.4%, led by a 10.6% surge in Cimarex Energy, as U.S. crude prices surged more than 1%. Oil jumped after the Energy Information Administration said U.S. crude inventories plummeted by 10 million barrels last week. Crude gained settled at $55.78 per barrel.
Consumer stocks such as Tiffany and Kohl’s also rose 3% and 3.4%, respectively. Tiffany posted quarterly earnings that beat analyst expectations.
European stocks ended Wednesday’s session in negative territory after the U.S. yield curve inversion deepened to levels not seen since 2007, reigniting fears of an impending recession.
The pan-European Stoxx 600 was 0.1% lower at the closing bell, insurance stocks shedding 1.2% while the oil and gas sector posted gains on the back of higher oil prices.
U.K.-listed airlines slid as no-deal Brexit fears intensified, led by easyJet, which dropped 2.7% by the closing bell.
Ailing British tourism group Thomas Cook saw its shares tumble 16.5% after agreeing a rescue package with China’s Fosun.
IMF demands for electricity price to be permanently tied to inflation
The Government of Serbia, together with the World Bank, needs to complete the analysis of whether the electricity price will go up, when and by how much by the end of the month. This is what the report published by the International Monetary Fund (IMF) on its website says. In addition to the question of the price of electricity, the IMF has also given a proposition about the harmonization of the growth of pension. A delegation from Washington arrives for the next control procedure in a month. The Government of Serbia is still making calculations, but the IMF is determined – this year, the price of electricity in Serbia should go up by at least as much as the inflation has grown, which is slightly over 2%.
Tencent mulls launch of data centre in Serbia - govt
Chinese online services and products provider Tencent is considering the launch of a data centre of its cloud platform in Serbia, the Serbian government said. The data centre of Tencent Cloud would represent the backbone of the Chinese company's infrastructure in Eastern Europe, the government said in a statement on Tuesday. Tencent is also considering the introduction of WeChat Pay service in Serbia, the government said after a meeting of trade and telecommunications ministry state secretary Tatjana Matic with Tencent Investment director Vivi Zhang in China.
New Fiat 500 Giardiniera to be produced in Kragujevac
The new Fiat 500 Giardiniera, which should replace the 500L model in the market, will most probably be produced in Serbia, reports the specialized Italian site clubalfa.it. They report, citing the Fiat management, that Giardiniera will most probably be produced at the Fiat Chrysler factory in Kragujevac, where the 500L model is produced now. As Politika reports, the Italian-American group is yet to confirm this, and Giardiniera should start being produced in 2021 at the latest.