US interest rates will be higher for longer: The US Federal Reserve decided to leave interest rates unchanged but signaled that policy will remain tight for longer amid the continuing strength of the economy, it announced following its two-day policy meeting yesterday. Most Fed officials expect to need to lift its benchmark rate by another 25 bps to 5.5%-5.75% this year, though Fed chair Jerome Powell made sure to emphasize that the central bank will “proceed carefully” with any further hikes. The meeting came on the heels of August data that showed inflation picking up again, raising expectations in some quarters that rates may need to move higher than currently though, especially in light of the recent surge in oil prices.

The markets weren’t happy: US stocks fell sharply following the post-meeting presser, with the Nasdaq losing 1.5% and the S&P down almost 1.0%. Asian markets are also in the red this morning, while equity futures in the US and Europe are signaling further losses today.

The Bank of England is up next: The UK’s headline inflation rate unexpectedly fell in August, dropping 0.1 percentage points to 6.7% and causing the GBP to fall to its lowest rate against the USD since May. The data has raised expectations that the Bank of England could keep rates on hold when it meets today. (Reuters | Financial Times)

EGX30

19,797

-0.8% (YTD: +35.6%)

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

11,062

-0.1% (YTD: +5.6%)

ADX

9,823

0.0% (YTD: -3.8%)

DFM

4,138

+1.6% (YTD: +24.1%)

S&P 500

4,402

-0.9% (YTD: +14.7%)

FTSE 100

7,732

+0.9% (YTD: +3.8%)

Euro Stoxx 50

4,276

+0.8% (YTD: +12.7%)

Brent crude

USD 93.18

-1.2%

Natural gas (Nymex)

USD 2.74

-3.9%

Gold

USD 1,951.20

-0.1%

BTC

USD 27,077

-0.4% (YTD: +63.4%)

THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 2.9 bn (35.5% above the 90-day average). Local investors were net sellers. The index is up 35.6% YTD.

In the green: Alexandria Containers and Cargo Handling (+6.9%), Sidi Kerir Petrochemicals (+6.6%) and Alexandria Mineral Oils Company (+5.1%).

In the red: Mopco (-5.1%), GB Corp (-4.8%) and Qalaa Holdings (-4.7%).

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