It’s Fed day: The US Federal Reserve will announce its decision on interest rates later today following the end of its two-day policy meeting.

No cuts just yet: Economists expect the Fed to leave interest rates at their current 22-year high of 5.25-5.5%, writes the Financial Times. Economists are instead looking to the Fed to cut rates at their following meeting in March or further down the line — late spring to early summer. “I see no reason to move as quickly or cut as rapidly as in the past,” Fed governor Christopher Waller said in December. The central bank has repeatedly urged caution to bullish markets that have priced in interest rate cuts as early as March, insisting that more encouraging inflation data is needed before the central bank can consider reversing its tightening cycle.

Premature cutting could be dangerous: Economists optimistic that rate cuts are coming later in the year feel the US economy is strong enough to withstand higher rates for longer rather than risking price pressures bouncing back after a premature cut.

EGX30

30,347

+3.8% (YTD: +21.9%)

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

11,986

-2.2% (YTD: -0.2%)

ADX

9,519

-0.3% (YTD: -0.6%)

DFM

4,168

-0.1% (YTD: +2.7%)

S&P 500

4,925

-0.1% (YTD: +3.3%)

FTSE 100

7,666

+0.4% (YTD: -0.9%)

Euro Stoxx 50

4,663

+0.5% (YTD: +3.1%)

Brent crude

USD 82.87

+0.6%

Natural gas (Nymex)

USD 2.09

+1.6%

Gold

USD 2,055

+0.5%

BTC

USD 43,534

+0.5% (YTD: +3.2%)

THE CLOSING BELL-

The EGX30 rose 3.8% at yesterday’s close on turnover of EGP 7.3 bn (119.5% above the 90-day average). Egyptian investors were net sellers. The index is up 21.9% YTD.

In the green: Oriental Weavers (+15.0%), Talaat Moustafa Group (+14.6%), and Orascom Development (+9.3%).

In the red: Alexandria Mineral Oils Company (-2.4%), Mopco (-2.0%), and GB Corp (-1.8%).

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