Bond investors are stubbornly pessimistic on the US economy: Investors in US treasuries continue to wager that the Federal Reserve’s interest rate hikes will push the US economy into a recession, against analysts’ predictions and stock market optimism, the Financial Times reports. Yields on short-term US government bonds surpassed those on long-term bonds by the widest margin in three months last week — a phenomenon known as the inverted yield curve that has preceded every recession in the past five decades. “A shallow recession by the end of this year, or beginning of next year, is our base case scenario,” one portfolio manager told the FT.

Slow business activity data signals sluggish global recovery: Flash PMI data for the world’s four biggest economies showed business activity continuing to rise in June, although the data indicated the slowest rate of expansion since February, according to S&P Global. The eurozone’s flash PMI “[pointed] to renewed weakness in the economy after the brief growth revival recorded in the spring,” dropping to 50.3 — its lowest since the beginning of the year. The bloc, along with the UK, the US, and Japan, saw a significant slowdown in the services sector and continued weakness in manufacturing.

ALSO WORTH NOTING:

  • Adnoc and G42 mull IPO of JV: Abu Dhabi National Oil Company (Adnoc) and Abu Dhabi-based artificial intelligence company G42 are considering taking their tech joint venture, AIQ, public by the end of the year. (Reuters)
  • Turkey’s currency dipped to a record low on Friday following the Turkishcentral bank’s decision to raise interest rates by 650 basis points, after analysts had expected a 1,250 bps hike. (Reuters)
  • Elon Musk’s SpaceX could reach USD 150 bn valuation: The spacecraft and satellite communications giant is looking to sell insider shares at USD 80 apiece, which would push the company’s valuation to USD 150 bn. (Bloomberg)
  • Goldman Sachs is cutting 125 managing director positions globally to cut costs amid a slowdown in dealmaking. (Bloomberg)
  • US tech companies to ramp up Indian investments post-Modi visit: Amazon will invest an additional USD 15 bn in India by 2030, while Google will open a global fintech center as the tech giants seek growth in a key market. (Bloomberg)

EGX30

17,713

+0.0% (YTD: +21.3%)

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

11,459

-0.1% (YTD: +9.4%)

ADX

9,557

+0.3% (YTD: -6.4%)

DFM

3,793

+0.4% (YTD: +13.7%)

S&P 500

4,348

-0.8% (YTD: +13.3%)

FTSE 100

7,462

-0.5% (YTD: +0.1%)

Euro Stoxx 50

4,272

-0.8% (YTD: +12.6%)

Brent crude

USD 73.85

-0.4%

Natural gas (Nymex)

USD 2.73

+4.6%

Gold

USD 1,921.20

+0.4%

BTC

USD 30,549

-0.2% (YTD: +84.6%)

THE CLOSING BELL-

The EGX30 rose 0.04% at Thursday’s close on turnover of EGP 1.80 bn. International investors were net buyers. The index is up 21.3% YTD.

In the green: Qalaa Holding (+7.2%), Ibnsina Pharma (+3.7%) and GB Corp (+3.3%).

In the red: Mopco (-1.8%), E-Finance (-1.5%) and Rameda Pharma (-1.2%).

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