2023 — A stellar year for global stocks: Last year saw global stock markets soaring to their best year since 2019, writes the Financial Times. Investor confidence that most of the world’s major central banks have ended the cycle of rate hikes helped drive a two-month rally that saw the MSCI World index jumping 16% since October, pushing the index up 22% y-o-y.

The S&P 500 had a particularly good year, soaring 24% throughout the year, and 14% since only October, stopping just short of its 2022 peak before the start of 2024.

Bonds are rebounding: Bonds markets also rallied alongside equities, with the US 10-year Treasury yield falling 3.87% by year’s end, down from over 5% in October, as inflation in the US continued to decline closer to the Fed’s 2% target.

US tech companies saw bumper gains over the year, with the tech-dominated Nasdaq Composite surging 43% y-o-y.

Also worth knowing about this morning:

  • Foreign investors are pulling back from China: China lost 87% of its net foreign investments in the country over the last four months of 2023, falling to USD 4.3 bn from USD 33 bn in August. (Financial Times).
  • HSBC subsidiary completes full sale of its French retail banking business to CCF: HSBC Continental Europe (HBCE) has completed the sale of its retail banking business in France to CCF, a subsidiary of My Money Group. (HSBC)

EGX30

24,894

+0.8% (YTD: +70.5%)

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

12,037

+0.6% (YTD: +0.6%)

ADX

9,578

+0.2% (YTD: 0.0%)

DFM

4,060

+0.3% (YTD: 0.0%)

S&P 500

4,770

-0.3% (YTD: 0.00%)

FTSE 100

7,733

+0.1% (YTD: 0.00%)

Euro Stoxx 50

4,522

+0.2% (YTD: 0.0%)

Brent crude

USD 77.04

-0.1%

Natural gas (Nymex)

USD 2.51

-1.7%

Gold

USD 2,071.80

-0.6%

BTC

USD 43,640.33

+2.7% (YTD: +3.2%)

THE CLOSING BELL-

The EGX30 rose 0.8% on Sunday on turnover of EGP 2.8 bn (15.3% below the 90-day average). Regional investors were net sellers. The index is up 70.5% YTD.

In the green: Mopco (+6.6%), Credit Agricole Egypt (+6.0%) and Alexandria Container and Cargo Handling (+4.9%).

In the red: GB Corp (-2.7%), Orascom Development (-2.2%) and EFG Holding (-2.1%).

Asian markets are mixed on this first trading day of the new year, while shares in Europe and North America look set to post gains at the opening bell.

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