Global growth prospects appear to be weakening after the EU cut its GDP forecast and data out of China pointed to slowing economic activity:

  • The EU has downgraded its 2022 eurozone growth forecast to 2.7% from 4% in February as the war in Ukraine takes its toll. Draft forecasts seen by Bloomberg also see inflation averaging 6.1% this year, almost double what it predicted three months ago.
  • China’s economic activity drops as covid lockdowns bite: China’s main measure of consumer activity, retail sales, plunged 11.1% y-o-y in April, while industrial production unexpectedly fell 2.9%, the FT reports, much of it on the back of the government’s covid zero policy.

MEANWHILE- Vodacom is considering a bond issuance to fund its EUR 2.34 bnacquisition of a majority stake in Vodafone Egypt which the company agreed with UK parent Vodafone Group last year, Bloomberg reports.

EGX30

10,462

-0.7% (YTD: -12.5%)

USD (CBE)

Buy 18.23

Sell 18.32

USD at CIB

Buy 18.25

Sell 18.32

Interest rates CBE

9.25% deposit

10.25% lending

Tadawul

12,915

-1.8% (YTD: +14.5%)

ADX

9,493

0.0% (YTD: +11.8%)

DFM

3,419

+2.8% (YTD: +7.0%)

S&P 500

4,008

-0.4% (YTD: -15.9%)

FTSE 100

7,465

+0.6% (YTD: +1.1%)

Euro Stoxx 50

3,685

-0.5% (YTD: -14.3%)

Brent crude

USD 114.24

+2.4%

Natural gas (Nymex)

USD 8.02

-0.4%

Gold

USD 1,823.60

+0.5%

BTC

USD 30,097

-3.8% (YTD: -35.2%)

THE CLOSING BELL-

The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 817.87 mn (6.4% below the 90-day average). Local investors were net buyers. The index is down 12.5% YTD.

In the green: EFG Hermes (+3.3%), MM Group (+3.1%) and Sidi Kerir Petrochemicals (+1.1%).

In the red: TMG Holding (-4.7%), Orascom Construction (-4.6%) and Orascom Development Egypt (-4.4%).

Most Asian markets are marginally in the green this morning, and shares in Europe and the US are on course to follow suit later today, according to stock futures.

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