Fed pushes on with 25 bps rate hike: The Federal Reserve hiked interest rates by another 25 bps yesterday to their highest level in 22 years, as it continues its monetary tightening in an effort to bring inflation down to target, it said in a statement following its two-day policy meeting. The central bank raised the fed funds rate to 5.25-5.5% — its highest level since 2001 — after keeping rates unchanged during its June meeting.

More hikes ahead? “The committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee's goals,” the statement read.

ALSO WORTH NOTING-

  • Meta shares jump on higher-than-expected 2Q revenues: The Facebook parent saw its 2Q 2023 revenues increase 11% y-o-y to USD 32 bn, beating the USD 31.1 bn forecast. Company shares rose 4.5% on the news. ( Earnings, pdf | Bloomberg)
  • Bad loans have EU regulators and investors on edge: European banks are warning of the rising risk of bad loans, leaving financial regulators and investors watching closely for signs of stress in their loan books. ( Reuters)

EGX30

17,396

-0.5% (YTD: +19.2%)

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

11,906

+0.2% (YTD: +13.6%)

ADX

9,766

+0.4% (YTD: -4.4%)

DFM

4,039

+0.6% (YTD: +21.0%)

S&P 500

4,567

0.0% (YTD: xx%)

FTSE 100

7,677

-0.2% (YTD: +3.0%)

Euro Stoxx 50

4,346

-1.0% (YTD: +14.6%)

Brent crude

USD 82.95

-0.8%

Natural gas (Nymex)

USD 2.64

-3.4%

Gold

USD 2,013.10

+0.5%

BTC

USD 29,600

+1.3% (YTD: +78.1%)

THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 978.8 mn (49.1% below the trailing 90-day average). Foreign investors were net sellers. The index is up 19.4% YTD.

In the green: ADIB (+3.2%), Mopco (+2.8%) and Elsewedy Electric (+1.6%).

In the red: Ezz Steel (-3.3%), Eastern Company (-3.0%) and Qalaa Holdings (-2.5%).

Asian markets are rising this morning on hopes that the Federal Reserve will soon call time on its tightening cycle. US and European shares look set to join them later today, according to equity futures.

Tags: