Traders go long on oil after surprise OPEC+ cut: Net-long positions on Brent crude saw their second-highest increase on record in the week up to 4 April after the oil cartel’s shock move to cut more than 1 mn barrels per day of supply from the market, Bloomberg reports. “We expect bullish capital flows to continue for the time being as the production cuts will drive storage draws,” Macquarie Group analysts said in a note.

A rise in net-long wagers? More traders took “long” positions — wagering that oil prices will rise — and fewer took “short” positions — wagering that prices will fall. Many analysts are predicting crude prices to pass the USD 100 mark on the back of the cartel’s move, though global recession fears are clouding the outlook. Brent is currently trading at just over USD 85 per barrel.

Crypto is riding high: BTC rose above USD 30k for the first time in 10 months yesterday as the rally in digital assets that accompanied last month’s banking crisis continues. The cryptocurrency peaked at USD 30.5k and was trading at around USD 30.2k as of midnight. BTC has risen more than 50% since the second week of March, when the collapse of three mid-sized US lenders triggered fears of a global banking crisis, and is up 83% year-to-date.

Driving the rally: The banking crisis has raised market expectations that the Federal Reserve will bring its tightening cycle to a premature end, helping to fuel a rally in speculative digital assets. Some analysts think investors are being drawn to crypto because of its separation from the traditional banking system, while others suggest that a drop in trading volumes following the collapse of market makers Silvergate Capital and Signature Bank is exaggerating price movements. (Bloomberg | Reuters)

Also worth noting:

  • EY won’t be splitting up after all: Big Four accountant Ernst & Young has scrapped plans to split its audit and consulting businesses following internal disagreements. (Financial Times)
  • Oman’s second-largest bank could get bigger: Oman’s Bank Dhofar has submitted a non-binding offer to merge with smaller lender Ahli Bank, a transaction that would create a banking group with more than USD 19 bn in assets. (MSX disclosure, pdf | Asharq Business)

EGX30

17,012

+1.4% (YTD: +16.5%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

10,849

-0.5% (YTD: +3.5%)

ADX

9,511

+0.1% (YTD: -6.9%)

DFM

3,444

+1.0% (YTD: +3.2%)

S&P 500

4,109

0.0% (YTD: +7.0%)

FTSE 100

7,786

+0.6% (YTD: +4.5%)

Euro Stoxx 50

4,333

+0.6% (YTD: +14.2%)

Brent crude

USD 85.61

+1.7%

Natural gas (Nymex)

USD 2.22

+1.5%

Gold

USD 2,018.90

0.0%

BTC

USD 30,226

+1.9% (YTD: +82.8%)

THE CLOSING BELL-

The EGX30 rose 1.4% at yesterday’s close on turnover of EGP 1.68 bn. Local investors were net buyers. The index is up 16.5% YTD.

In the green: Eastern Company (+6.2%), Heliopolis Housing (+5.2%) and Juhayna (+4.8%).

In the red: Edita (-2.2%), Egypt Kuwait Holding – EGP (-1.1%) and Qalaa Holdings (-1.0%).

Asian markets are mostly up in early trading this morning and futures suggest a sea of green when US and European indices open later on in the day.

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