Oil majors move to further tighten supply: The world’s two biggest oil exports yesterday announced additional voluntary cuts to supply amounting to 1.5% of global crude output, Reutersand Bloombergreport. Saudi Arabia said it will extend its oil production cut of 1 mn barrels per day by an extra month to include August, while Russia said it will cut oil exports by 500k barrels a day next month. Algeria said it would support the move by slashing its oil output by an additional 20k barrels a day throughout August.

But the markets shrugged: Oil rose on the announcement but had pared the gains as of close of trading yesterday, with Brent closing 0.6% down at around USD 75 per barrel. Expectations for a surge in oil prices this year have been replaced by a more bearish outlook in recent weeks, as a flagging recovery in China and global recession fears dampen demand.

ALSO WORTH NOTING-

  • Chinese manufacturing grew at a slower pace in June: China’s purchasing manufacturer’s index (PMI) fell to 50.5 in June from 50.9 the month before. Business confidence hit an eight-month low in the country while weak demand caused input prices to slip. (PMI, pdf | CNBC)
  • Turkish state banks reportedly sold as much as USD 1 bn yesterday morning in efforts to stop the TRY from slipping any further against the USD. The Turkish currency has lost some 28% so far this year.(Bloomberg)
  • African infrastructure fund targets USD 500 mn close: The African Development Bank’s (AfDB) infrastructure investment platform Africa50 wants to raise USD 500 mn in the first close of its Infrastructure Acceleration Fund, which will invest in energy, telecom, transport, and water projects across the continent. (Statement | Bloomberg)

EGX30

17,665

+2.2% (YTD: +21.0%)

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

11,545

+0.5% (YTD: +10.2%)

ADX

9,562

+0.1% (YTD: -6.4%)

DFM

3,879

+2.3% (YTD: +16.3%)

S&P 500

4,456

+0.1% (YTD: +16.1%)

FTSE 100

7,527

-0.1% (YTD: +1.0%)

Euro Stoxx 50

4,398

-0.0% (YTD: +15.9%)

Brent crude

USD 74.96

-0.6%

Natural gas (Nymex)

USD 2.71

-3.2%

Gold

USD 1,929.00

-0.0%

BTC

USD 31,061

+1.6% (YTD: +88.1%)

THE CLOSING BELL-

The EGX30 rose 2.2% at last Monday’s close on turnover of EGP 1.9 bn (15% below the trailing 90-day average). Foreign investors were net buyers. The index is up 21.0% YTD.

In the green: Palm Hills Development (+5.0%), Madinet Masr (+4.7%) and Abu Dhabi Islamic Bank (+4.6%).

In the red: Mopco (-2.7%), Edita (-1.4%) and Orascom Construction (-0.5%).

Asian markets are largely down in early trading this morning as the markets anticipatea rate hike by Australia’s central bank today. Futures suggest a mixed picture when European markets open later on today. Wall Street is closed today to mark Independence Day.

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