Fed leaves rates unchanged: The US Federal Reserve left interest rates unchanged for the second consecutive meeting yesterday, it said in a statement. Interest rates will stay at a 22-year high at 5.25-5.5% following an aggressive monetary tightening cycle, which has pushed rates to their highest level since 2001.

But they hinted that future hikes may be coming: “The process of getting inflation sustainably down to 2% has a long way to go … The committee will always do what it thinks is appropriate at the time,” Fed chair Jerome Powell said in a presser following the announcement (watch, runtime: 51:34).

Analysts think differently: “The statement leans to the dovish side … The fact that they left rates unchanged for the second time in a row suggests the Fed might leave rates unchanged in December. And if they do, that means the Fed is done,” Spartan Capital Securities’ Peter Cardillo told Reuters.

Markets rallied on the news: US stocks rose following the announcement, with the benchmark S&P 500 gaining 1.1%, the tech-dominated Nasdaq Composite gaining 1.6%, and the Dow Jones Industrial Average up 0.7%. The gains offset a few turbulent weeks for US stocks triggered by fears of further rate hikes and political tension due to the war on Gaza, which pushed both the S&P 500 and Nasdaq Composite into correction.

It was a different story for the oil market, with prices slipping to a three-week low. Brent crude futures dipped 0.5% to USD 84.63 a barrel following the Fed’s announcement — its lowest price since 7 October when the war on Gaza broke out, Reuters wrote.

EGX30

22,433

-0.5% (YTD: +53.7%)

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

10,815

+1.2% (YTD: +3.2%)

ADX

9,429

+0.9% (YTD: -7.7%)

DFM

3,893

+0.4% (YTD: +16.7%)

S&P 500

4,238

+1.1% (YTD: +10.4%)

FTSE 100

7,342

+0.3% (YTD: -1.5%)

Euro Stoxx 50

4,092

+0.8% (YTD: +7.9%)

Brent crude

USD 84.63

-0.5%

Natural gas (Nymex)

USD 3.49

-2.3%

Gold

USD 1,987.50

-0.3%

BTC

USD 35,336.62

+2.5% (YTD: +113.6%)

THE CLOSING BELL-

The EGX30 fell 0.5% at yesterday’s close on turnover of EGP 3.5 bn (46.2% above the 90-day average). Local investors were net sellers. The index is up 53.7% YTD.

In the green: Palm Hills Development (+9.5%), E-Finance (+3.4%) and Oriental Weavers (+2.7%).

In the red: Mopco (-4.5%), Orascom Development (-4.2%) and Eastern Company (-4.0%).

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