OECD predicts global growth slowdown in 2024: Global growth will slow to 2.7% in 2024 from an expected 3.0% this year on the back of tightening global financial conditions and a slowdown in China, according to new OECD forecasts, Bloomberg reports.

Not great: A 2.7% growth rate would mark the weakest annual expansion since the global financial crisis, with the exception of 2020 when the covid-19 pandemic hit, according to Bloomberg.

Global debt hits new record: Global debt climbed to a fresh high of USD 307 tn in the second quarter of 2023, lifted by continued borrowing in developed economies, according to figures from the Institute of International Finance (IIF) picked up by Reuters. The global financial institution said that the global debt-to-GDP ratio also lept to 336% due to slowing growth and disinflation.

Expect new highs in the coming quarters: “As higher rates and higher debt levels push government interest expenses higher, domestic debt strains are set to increase,” the IIF warned.

ALSO WORTH NOTING-

  • UAE closes first USD bond issuance of 2023: The UAE has raised USD 1.5 bn from an issuance of 10-year USD-denominated bonds on Monday. This was the country’s first turn to the international debt markets in over a year. (Bloomberg)
  • Can deb t restructuring rescue China’s property sector? Chinese developers Sunac and Country Garden have renegotiated debt terms with creditors to ease the deepening crisis in the country’s property sector. This initially bumped the value of Sunac’s stock on Tuesday morning, but these gains were quickly lost and shares finished 7% down on the day before following news it had filed for US bankruptcy protection. (Reuters)

EGX30

19,954

+1.0% (YTD: +36.7%)

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

11,070

+0.3% (YTD: +5.7%)

ADX

9,822

+0.1% (YTD: -3.8%)

DFM

4,075

+0.7% (YTD: +22.1%)

S&P 500

4,444

-0.2% (YTD: +15.7%)

FTSE 100

7,660

+0.1% (YTD: +2.8%)

Euro Stoxx 50

4,243

-0.1% (YTD: +11.8%)

Brent crude

USD 94.60

+0.2%

Natural gas (Nymex)

USD 2.84

+4.1%

Gold

USD 1,952.60

0.0%

BTC

USD 27,186

+1.6% (YTD: +64.4%)

THE CLOSING BELL-

The EGX30 rose 1.0% at yesterday’s close on turnover of EGP 3.2 bn (51.1% above the 90-day average). Foreign investors were net buyers. The index is up 36.7% YTD.

In the green: Mopco (+19.2%), Abu Qir Fertilizers (+5.5%) and Alexandria Containers and Cargo Handling (+4.2%).

In the red: Oriental Weavers (-4.7%), Orascom Development Egypt (-2.7%) and Talaat Moustafa Group (-2.6%).

Asian markets are in the red again this morning as markets await the Federal Reserve’s decision on interest rates. US and European markets look set to join them later, according to equity futures.

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