EMs could stand to gain from US-China competition: Non-aligned emerging and frontier markets could benefit from tensions between the US and China as global investors look for ways to avoid the superpowers’ rivalry, the Financial Times quotes Rich Nuzum, chief investment strategist at US consulting firm Mercer, as saying. Countries that are able to attract investments from both sides without being hit by retaliatory actions will be prized by investors, Nuzum said.

The caveats: The most attractive EMs have growing populations and strong regulatory frameworks — but even those that tick all the boxes shouldn’t expect inflows until after the Fed completes its tightening cycle. “Once the US monetary policy becomes more expansionary, they’re really going to take off, but [before then] why would you fight the Fed?” Nuzum said.

Chinese economy hits a speed bump in May: China’s economic performance fell below expectations in May, with industrial output and retail sales both failing to meet forecasts, Reutersreports. Output growth in the country’s vital industrial sector slowed to 3.5% in May from 5.6% April, while retail sales growth slipped to 12.7% during the month from 18.4% in April, according to new figures out Thursday.

ALSO WORTH NOTING-

  • Citi to ax more jobs:Citigroup is set to slash 5k jobs by the end of June. (Financial Times)
  • Russia urged to adopt China’s Swift alternative: Russian authorities should start working to connect with China’s Swift alternative, the Cross-Border Interbank Payments System (CIPS), in order to resolve issues with cross-border payments, the head of the country’s fertilizer industry body has said. (Reuters)

EGX30

17,882

+0.1% (YTD: +22.5%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,516

-0.2% (YTD: +9.9%)

ADX

9,447

+0.7% (YTD: -7.5%)

DFM

3,789

+1.5% (YTD: +13.6%)

S&P 500

4,410

-0.4% (YTD: +14.9%)

FTSE 100

7,643

+0.2% (YTD: +2.6%)

Euro Stoxx 50

4,395

+0.7% (YTD: +15.9%)

Brent crude

USD 76.61

+1.2%

Natural gas (Nymex)

USD 2.63

+3.9%

Gold

USD 1,971.20

0.0%

BTC

USD 26,531

+0.5% (YTD: +60.4%)

THE CLOSING BELL-

The EGX30 was essentially flat at today’s close on turnover of EGP 1.91 bn. Foreign investors were net buyers. The index is up 22.5% YTD.

In the green: Credit Agricole (+6.3%), Eastern Company (+3.9%) and Heliopolis Housing (+3.3%).

In the red: Telecom Egypt (-3.1%), Qalaa Holdings (-3.0%) and Juhayna (-2.3%).

Tags: