Dow closes more than 300 points lower amid fears virus resurgence could slow down economic recovery; European markets end lower as optimism over coronavirus vaccine wanes; BELEX15 remains flat; NBS keeps key policy rate unchanged, announces additional support to dinar liquidity
Stocks fell on Thursday as an increasing number of U.S. coronavirus cases raised concerns over the health of the economy heading into year-end. The Dow Jones Industrial Average dropped 317.46 points, or 1.1%, to 29,080.17. The 30-stock average fell as much as 495 points earlier in the session. The S&P 500 slid 1.0%, or 35.65 points, to 3,537.01, while the Nasdaq Composite dropped 0.7%, or 76.84 points, to 11,709.59.
On the data front, initial weekly jobless claims fell last week to 709,000 from 757,000 in the prior week, the Labor Department said Thursday. That market the fourth straight weekly decline for initial claims.
European stocks ended Thursday’s session in the red, retreating from some of the gains seen earlier in the week as initial positive sentiment around a coronavirus vaccine started to fade. The pan-European Stoxx 600 closed about 0.8% lower provisionally, with bank stocks shedding 2% to lead losses as almost all sectors and major bourses slipped into negative territory.
German tech group Siemens saw its shares fall 3% after offering a mixed set of earnings and conservative forward guidance before the bell.
Serbian BELELX15 was flat again, with no move at all as gains at NIS was neutralized by drops at Komercijana and Fitofarmacija. The most active name was NIS with RSD 1.3m in volume.
NBS Executive Board voted to keep the key policy rate unchanged at 1.25%. Under the NBS’s projection, in the coming period inflation will continue to move in the lower half of the target band, closer to its lower bound, and will gradually trend closer to the target midpoint (3%) in 2022 consistent with the expected further recovery of demand. Such movements indicate that there is room for additional monetary policy easing in the period ahead.
Source: CNBC, Ilirika