Global stocks slump on surging yields, China slowdown fears: The US S&P 500, the European Stoxx 600, and China’s CSI 300 have lost almost USD 3 tn so far in August as investors fret over rising US interest rates and China’s economic slowdown, according to research picked up by the Financial Times. The poor performance puts MSCI’s global equities index on track for its worst monthly performance since last September. The drop marks a sharp change of fortunes from the first half of the year, when global equities soared on optimism that the Federal Reserve would make the fabled “soft landing” and wind up its tightening cycle without driving the US economy into recession.

Private credit on the up as private equity struggles: Some of the biggest private equity firms, including KKR and Bain Capital, are handing over distressed companies in their portfolios to the lending units of their competitors, the Financial Times reports. After what one Moody’s exec described as “many years of easy money and low interest rates where companies owned by private equity took advantage,” portfolio companies are now grappling with higher interest rates, persistent inflation, and supply chain problems. That has meant they’re increasingly being forced to cede heavily leveraged companies to private credit, the salmon-colored paper says.

ALSO WORTH KNOWING-

  • Oil supply cut: Saudi Arabia will likely extend its voluntary oil supply cut of 1 mn barrels per day into October in a bid to support prices, according to analysts. (Reuters)
  • QIA goes long on India: Qatar’s sovereign wealth fund has invested USD 1 bn in India’s largest retailer, Reliance Retail Ventures, and acquired a 2.7% stake in Adani Green Energy, the renewable energy arm of the conglomerate owned India’s embattled bn’aire Gautam Adani. (Bloomberg | Bloomberg)

EGX30

18,133

-0.5% (YTD: +24.2%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,367

-0.1% (YTD: +8.5%)

ADX

9,729

-0.4% (YTD: -4.7%)

DFM

4,099

+0.8% (YTD: +22.9%)

S&P 500

4,436

+1.1% (YTD: +15.5%)

FTSE 100

7,321

+0.7% (YTD: -1.8%)

Euro Stoxx 50

4,267

+0.2% (YTD: +12.5%)

Brent crude

USD 82.93

-1.3%

Natural gas (Nymex)

USD 2.48

-3.1%

Gold

USD 1,945.40

+1.0%

BTC

USD 26,577

+2.8% (YTD: +60.8%)

THE CLOSING BELL-

The EGX30 fell 0.5% at yesterday’s close on turnover of EGP 2.6 bn (27.5% above the 90-day average). Local investors were net sellers. The index is up 24.2% YTD.

In the green: Juhayna (+2.7%), TMG (+2.4%), and Sidpec (+1.5%).

In the red: Edita (-4.6%), Beltone Financial Holding (-4.1%), and Heliopolis Housing (-2.8%).

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