Dow snaps 8-day winning streak on fears spiking oil will slow the global economy; European stocks close lower amid geopolitical tensions; oil shares spike 3%
Stocks fell on Monday amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth. The Dow Jones Industrial Average slid 142.70 points, or 0.5% to 27,076.82. It was the first decline in nine days for the Dow. The S&P 500 pulled back 0.3% to close at 2,997.96. The Nasdaq Composite also dipped 0.3% to 8,153.54.
General Motors shares fell 4.3% after the United Auto Workers union went on strike after contract talks between the two entities broke down. Higher gasoline prices could also potentially hurt sales.
Sentiment was also depressed after China’s industrial production fell to a new 17½-year low. Production rose 4.4% in August while analysts polled by Reuters expected a gain of 5.2%. The industrial-production slowdown came as China and the U.S. remain embroiled in a trade war.
European stocks closed lower Monday as investors digested an escalation of tensions in the Middle East following an attack on Saudi oil production. The pan-European Stoxx 600 closed provisionally about 0.4% lower. Household goods fell over 1% to lead losses while oil and gas stocks surged 3% as crude prices soared following the oil attack in Saudi Arabia. Oil and gas stocks were the biggest climbers: Lundin Petroleum jumped nearly 9%, Tullow Oil was up over 8%, and Technipfmc added almost 5%.
KMBN: Privatization of Komercijana attracted three banks and one fund
According to the latest statement of Serbian Finance Minister, there were three banks that delivered non-mandatory bids for privatization of Komercijana Banka, as well as one investment fund. Among these is an unnamed domestic bank. Unofficially, local press speculated that interested sides are NLB, Raifffesien and Direktna banka, while Ripplewood Advisors is seen as a potentially interested fund.
Source: Ekapija, Iliirka
120 mln euros of budget funds for Morava Corridor
Serbian PM Ana Brnabic on Monday announced an additional 120 mln euros of budget funds would be set aside for the Morava Corridor thanks to increased budget revenues, which she said were 60 bln dinars higher than planned. At a press conference about Serbia's first positive budget review, she explained that some of the surplus budget revenues - 16.8 bln dinars - would go to infrastructure projects: the Morava Corridor and the Milos the Great motorway. The public debt is continuing to decline and it is currently at around 52 pct of GDP, she said.
As early as of December, the average salary will amount to 500 euros"
Finance Minister Sinisa Mali said he expects the average salary to be above € 500 by December. He said in an interview for daily "Blic" that the increase in the public sector would follow from the November salary, which is paid in December. "Talks with the IMF are currently underway, and we are encouraged by a budget surplus of RSD 46.6 billion in August," Mali said. He pointed out that, according to President Vucic's announcement, the largest increase would be received by medical staff, nurses and then doctors, and the increase would be, on average, more than six percent.