Market unease about interest rates has soured the mood on the US IPO market, prompting VCs to advise startups to postpone plans to go public despite recent optimism following a spate of tech listings, reports the Financial Times. Tech startups Arm, Instacart and Klaviyo were all met with strong investor demand during their recent IPOs but their start to life on the Nasdaq has been mixed, with investor interest waning following hawkish signals from the Federal Reserve.

Remember: Arm and Instacart both made their debuts on the Nasdaq last month in what were widely seen as bellwether listings that could potentially reinvigorate the stalled US IPO market. Arm shares have spent the past two weeks treading water (though remain up 5% from the USD 51 IPO price), while Instacart has fallen below its USD 30 listing price.

What VCs are saying: Many startups had delayed their plans for initial public offerings over 18 months ago in 2021, but VCs advise waiting another year. “In our portfolio we would advise: unless you really need to, hold back,” said Mike Volpi, general partner at European VC Index Ventures. “The market has been rough in the past few weeks . . . Unless you need to go out, I’d wait until the second half of next year.”

ALSO- Pressure eases on ECB as euro inflation hits new low: Annual inflation in the eurozone slowed to its lowest level in almost two years in September as energy prices continued to fall, according to flash figures (pdf) out Friday. Consumer prices grew at a 4.3% clip during the month, down from 5.2% in August, the weakest rate since October 2021. This comes a few weeks after the European Central Bank raised interest rates to record highs in a bid to curb inflation.

EGX30

20,055

-0.6% (YTD: +37.4%)

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

11,040

-0.1% (YTD: +5.4%)

ADX

9,785

-0.3% (YTD: -4.2%)

DFM

4,164

+0.5% (YTD: +24.8%)

S&P 500

4,288

-0.3% (YTD: +11.7%)

FTSE 100

7,608

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Euro Stoxx 50

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Brent crude

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Gold

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BTC

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+0.3% (YTD: +64.1%)

THE CLOSING BELL-

The EGX30 fell 0.6% at yesterday’s close on turnover of EGP 1.9 bn (11.9% below the 90-day average). Foreign investors were net sellers. The index is up 37.4% YTD.

In the green: Orascom Construction (+20.0%), Abu Dhabi Islamic Bank (+4.4%) and Eastern Company (+3.6%).

In the red: Fawry (-7.2%), Mopco (-3.8%) and Ezz Steel (-3.8%).

Asian markets are in the green this morning as we hit dispatch time, with the Hang Seng and Nikkei leading the gainers. Both Korea’s Kospi and Shanghai Composite are also in the green. Traders are reaching positively to news that Chinese factory activity expanded for the first time in six months. Futures hint suggest markets in Europe and the United States will start the day in positive territory, with only Toronto looking at red when the opening bell sounds.

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