SLOVENIA
Details of tourism aid package emerging
Details are emerging of a package of state aid the Slovenian tourism sector will get to survive what is expected to be a deep slump. Aside from an extension of existing measures that all companies are eligible for, tourism companies will get an extra loan facility and a short-time work scheme. (STA)
INTERNATIONAL MARKETS
Dow falls for the first time in 3 days, drops more than 200 points; European markets close lower amid sinking oil prices; reopening efforts in focus; BELEX15 up 0.25%; EC Forecasts GDP Contraction of 4% in Serbia this year, rebound of 6% next one
The Dow Jones Industrial Average and S&P 500 fell for the first time in three days on Wednesday as investors weighed the prospects of reopening the economy along with a dismal report on U.S. payrolls. The 30-stock Dow closed 218.45 points lower, or 0.9%, at 23,664.64. The Dow reached its session low in the final hour of trading. The S&P 500 slid 0.7% to 2,848.42. Both indexes were up earlier in the day. However, the Nasdaq Composite rose 0.7% to 8,854.39 as big tech stocks built on their recent gains.
Recent economic data continues to show the economic damage being dealt by the virus and the shutdown of the economy. A report from ADP and Moody’s Analytics showed private payrolls were cut by 20.2 million last month. That was the worst report in the data series’ history. Still, it was not as bad as a Dow Jones estimate of 22 million job losses.
European stocks closed lower on Wednesday as investors reacted to falling oil prices, efforts to lift lockdown measures and fresh economic data. The pan-European Stoxx 600 closed down by around 0.4% provisionally, with oil and gas stocks leading the losses. The sector was down by about 3.5%.
Earnings continued to drive individual share price action. Dialog Semiconductor stock climbed almost 14% after the British chipmaker beat first-quarter profit expectations and offered a strong outlook for 2020, while Virgin Money gained over 4% after reporting a stronger-than-expected capital position.
BELEX15 was up light 0.25%, as NIS and Jedinstvo advanced 1.8% and 2.2% respectively. Overall trade volume was really miserable. No major corporate events were seen.
Following two years of strong GDP growth, the Serbian economy is projected to contract sharply by around 4% in 2020, followed by a strong rebound of 6% in 2021. the European Commission says. In the Serbia section of the Spring 2020 European Economic Forecast, the EC says that private consumption and investment are expected to fall in 2020 due to lockdown restrictions, confidence effects and uncertainties, before a strong recovery in 2021. (CNBC, ILIRIKA)
