Stock markets rallies make analysts believe a risk reset is around the corner: The world’s most prominent indices — S&P 500, Nasdaq, Japan’s Nikkei 225, Germany’s Dax, and others — have all notched record highs in recent weeks, cementing investor and analyst confidence and pushing some to let go of previously risk-averse approaches, the Financial Times writes.

“Everyone’s been anticipating a recession for a long time and it hasn’t materialized,”UBS Asset Management’s head of multi-asset strategy Evan Brown told the salmon-colored paper. “It’s like a reset of the risk cycle,” Brown added, pointing to previously risk-averse investors not jumping back into stocks. Driving investor confidence is the understanding that central banks across the world seem to have been able to reel back inflation without sparking an economic downtown — referred to by economists as the Goldilocks scenario.

Looking into the crystal ball: Goldman Sachs, UBS, and Bank of America (BofA) have all upgraded their year-end forecasts for the S&P 500, with BofA penciling in a 5% increase above current levels. Société Générale sees the Nasdaq 100’s earnings gaining 40% in 1H 2024, while Morgan Stanley expects pan-European indices to “keep rising like it’s 1995,” notching a 12% increase above current levels.

THE MARKETS THIS MORNING-

Asian markets are mixed in early trading today. Futures point to similarly mixed open for European shares later this morning, while US futures softened overnight after shares advanced yesterday .

EGX30

32,662

+2.2% (YTD: +31.2%)

USD (CBE)

Buy 48.85

Sell 48.72

USD at CIB

Buy 48.75

Sell 48.85

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,614

+0.5% (YTD: +5.4%)

ADX

9,229

0.0% (YTD: -3.7%)

DFM

4,253

+0.1% (YTD: -4.8%)

S&P 500

5,175

+1.1% (YTD: +8.5%)

FTSE 100

7,748

+1.0% (YTD: +0.2%)

Euro Stoxx 50

4,983

+1.1% (YTD: +10.2%)

Brent crude

USD 81.92

-0.4%

Natural gas (Nymex)

USD 1.71

-0.5%

Gold

USD 2,158

0.0%

BTC

USD 71,370

-1.2% (YTD: +68.5%)

THE CLOSING BELL-

The EGX30 fell 2.2% at yesterday’s close on turnover of EGP 5.7 bn (20.1% above the 90-day average). Local investors were net sellers. The index is up 31.2% YTD.

In the green: Juhayna (+15.6%), Edita (+7.1%), and Talaat Moustafa Group (+5.6%).

In the red: Alexandria Containers and Cargo Handling (-7.4%), Sidi Kerir Petrochemicals (-7.0%), and Eastern Company (-6.2%).

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