Could 2024 be the year when the world completes its transition into a new era of expensive money? While investors are convinced that most of the world’s major central banks have ended the cycle of rate hikes — a sentiment that has led global stock and bond markets to rally in recent weeks — the implications of a “new economic order” where interest rates are generally higher are likely to become more evident in 2024, Reuters writes. Investors are betting that the US Federal Reserve could trim rates by around 1.5% to 4% by the end of the year.

Business and consumers are going to face fresh challenges: Everyone, from individual consumers to countries, will have to figure out how to readjust to a high interest rate environment, the newswire writes. While consumers will earn more on their savings, they will have to cope with borrowing rates that could be more than twice as high and some companies will have to restructure their debt.

ALSO WORTH NOTING:

  • Argentina and the International Monetary Fund are reportedly close to reaching an agreement — which could come as soon as this month — over the delayed seventh review of the country’s USD 44 bn loan program. An IMF delegation is set to arrive in Buenos Aires on Thursday to continue negotiations. (Reuters | Bloomberg)
  • Norway's largest pension fund KLP has excluded Saudi Aramco along with six Gulf telecom and five real estate companies from its portfolio over human rights and climate concerns, the fund said (pdf) on Thursday. The move saw KLP offload some USD 15 mn worth of assets, Reuters reports.
  • BTC nears 2-year high:The cryptocurrency surpassed USD 45k for the first time in nearly 2 years. BTC has risen over 20% since the start of December. (Bloomberg)

EGX30

25,502

+2.4% (YTD: +2.4%)

USD (CBE)

Buy 30.82

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

12,123

+0.7% (YTD: +1.3%)

ADX

9,588

+0.1% (YTD: +0.1%)

DFM

4,091

+0.8% (YTD: +0.8%)

S&P 500

4,743

-0.6% (YTD: -0.6%)

FTSE 100

7,722

-0.2% (YTD: -0.2%)

Euro Stoxx 50

4,513

-0.2% (YTD: -0.2%)

Brent crude

USD 75.89

-1.5%

Natural gas (Nymex)

USD 2.57

+2.4%

Gold

USD 2,067.40

-0.2%

BTC

USD 45,106.91

+3.3% (YTD: +6.3%)

THE CLOSING BELL-

The EGX30 rose 2.4% at yesterday’s close on turnover of EGP 3.3 bn (0.3% below the 90-day average). Foreign investors were net sellers. The index is up 2.4% YTD.

In the green: B Investments (+9.7%), Eastern Company (+9.2%), and Palm Hills Developments (+8.3%).

In the red: ADIB (-2.0%), Mopco (-0.8%), and Abu Qir Fertilizers (-0.7%).

Asian markets are solidly in the red this morning, tracking Wall Street lower in early trading. Stocks of tech players and chipmakers are under particular pressure after Barclays yesterday downgraded Apple, says CNBC. European and North American markets also look set to open in the red later today.

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