Dow jumps more than 200 points, closes above 27,000 for the first time since July; European stocks close higher ahead of central bank meetings
Stocks jumped on Wednesday as Apple outperformed, pushing the major indexes back to levels not seen since late July. The Dow Jones Industrial Average rose 227.61 points, or 0.85% to 27,137.04, posting its first six-day winning streak since June. Wednesday’s session also marked its first close above 27,000 since July 30. The Dow is now less than 1% from its all-time high reached July 16. The S&P 500 gained 0.7% to close at 3,000.93 its highest level since late July. The broad index also ended the day less than 1% from a record high set on July 26. The Nasdaq Composite climbed 1% to 8,169.68, its best close since July 31.
Apple shares closed 3.2% higher after climbing more than 1% on Tuesday. The tech giant unveiled three new iPhones on Tuesday along with a new Apple Watch and a TV subscription service. Apple also showcased a gaming subscription called Apple Arcade.
Micron Technology contributed to tech’s gains, rising 2.2% after an analyst at Longbow upgraded the stock to buy from neutral. The analyst said Micron should benefit from improving fundamentals in the memory and flash storage market. Cisco Systems also rose 1.5% after Evercore ISI initiated the Dow member with an outperform rating, citing a “unique” asset portfolio.
European stocks traded higher Wednesday as investors look ahead to key central bank meetings, while China signaled a thawing of trade tensions with the U.S. The pan-European Stoxx 600 provisionally rose 0.77% by the session end, basic resources jumping out to 1% gains while oil and gas and autos were the only sectors trading in negative territory.
Spanish clothing company Inditex slid 3.9% after slightly missing first-half earnings expectations, while French utility company Veolia fell 2.1%.
NBS: FX reserves in August at EUR 13bn
Gross and net NBS FX reserves continued to increase, hitting in August a new end-of-month high since 2000, i.e. since the data have been tracked in this manner. Gross NBS FX reserves reached EUR 13,099.9 mn, up by EUR 341.4 mn from July. In the past year (since end-August 2018) gross FX reserves increased by EUR 1,774.3 mn (mainly on account of NBS interventions in the domestic FX market in the form of net FX purchases – by EUR 1,685 mn, which is the healthiest way to boost reserves). And this happened in the very period when the Republic of Serbia net repaid its debt under FX loans and securities in the amount of EUR 1,766.9 mn.
Serbia, Czech Republic sign agreements on cooperation
Within the framework of a visit to Serbia by a delegation of the Czech Republic, ministers of the two countries on Wednesday signed two agreements on cooperation with Presidents Aleksandar Vucic and Milos Zeman in attendance. An agreement on intergovernmental cooperation in the defence sector was signed by Defence Ministers Aleksandar Vulin and Lubomír Metnar. A memorandum of understanding on cooperation in innovation, artificial intelligence and robotics was signed by Serbian Minister of Innovation and Technological Development Nenad Popovic and Czech Minister of Industry and Trade Karel Havlicek.
Talks underway about Czech company coming to Serbia
Serbian-Czech bilateral trade has grown by over 70 pct since 2014, exceeding 1 bln euros in 2018, Chamber of Commerce and Industry of Serbia (PKS) President Marko Cadez said Wednesday at a Serbian-Czech business forum in Belgrade. Discussions about Czech digital service provider Rockaway coming to Serbia have been underway for a long time now, Cadez noted. There is great interest among Czech companies in the field of digitalisation, he said. Over the past five years, Serbian companies have doubled exports to the Czech Republic and "interest among Czech companies in major investments in Serbia over the past year or two" is what gives a particular quality to our cooperation, he said.