The Federal Reserve won’t start cutting interest rates until at least July 2024, a Financial Times poll showed, with nearly 60% of the participants expecting cuts to begin in 3Q 2024 or later. Some 75% of the 40 economists surveyed believe that the Fed will only trim rates by half a percentage point or less in 2024 from its current 22-year high of 5.25-5.5%. Most of them, however, agreed that the Fed’s rate hike cycle is now over.

Wall Street expects officials to act sooner: Investors rushed into stocks, bonds, gold, and risk assets at the end of last week as markets were flooded with bets that the Fed will begin cutting rates as early as March, expecting rates to stand at around 4% by the end of next year.

EGX30

24,704

-1.7% (YTD: +69.2%)

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

11,174

+0.3% (YTD: +6.6%)

ADX

9,481

-0.4% (YTD: -7.2%)

DFM

3,969

-0.2% (YTD: +19.0%)

S&P 500

4,549

-0.4% (YTD: +18.5%)

FTSE 100

7,515

+0.3% (YTD: +0.9%)

Euro Stoxx 50

4,483

+0.7% (YTD: +18.2%)

Brent crude

USD 74.24

-3.8%

Natural gas (Nymex)

USD 2.57

-5.4%

Gold

USD 2,047.90

+0.6%

BTC

USD 43,834

0.0% (YTD: +165.3%)

THE CLOSING BELL-

The EGX30 fell 1.7% at yesterday’s close on turnover of EGP 5.3 bn (72.7% above the 90-day average). Foreign investors were net buyers. The index is up 69.2% YTD.

In the green: Ezz Steel (+2.7%), Palm Hills Development (+2.3%) and Madinet Masr (+1.8%).

In the red: Alex Container and Cargo Handling (-5.6%), Abu Qir Fertilizers (-5.5%) and Sidi Kerir Petrochemicals (-5.4%).

Asian markets are mostly in the red during early trading this morning. Futures suggest a mixed open in Europe later this morning while major US benchmarks are likely to open down.

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