Good afternoon, folks. We’re only two days into the work week, but it's heating up to be a big week in the finance world with the world’s business press very much focussed on a global stock selloff spreading across the globe.

THE BIG STORY TODAY

Non-oil private sector activity was at its second highest level since August 2021, despite dipping in July, S&P Global’s Egypt Purchasing Managers’ Index (PMI) (pdf) report for last month showed. Egypt’s non-oil activity held near the growth threshold at the start of 3Q 2024, with companies seeing only marginal declines in output and new orders, resulting in businesses capping their purchasing rates, according to the report.

We were hoping that this would be the month that we would finally be in the green: July’s reading dipped slightly to 49.7 in July, down from a three-year peak of 49.9 in June — marking the 44th straight month that the country’s non-oil private sector has been in contraction. News last month that the index showed us only 0.1 point away from the 50.0 mark that separates growth from contraction, had given some hope that July would show the private sector finally entering growth territory.

THE BIG STORY ABROAD

Japan’s benchmark Nikkei index took its biggest tumble since October 1987 today as fears of a US recession following disappointing US jobs numbers rattled Asian and European markets. The selloff saw the Nikkei plunge 12.4%, while over in the states, Nasdaq futures seem ready for their biggest opening drop in four years.

Analysts are pointing to low US jobs growth as the reason behind the global stock selloff: Markets have been pricing in a larger-than-expected 50 bps Fed rate cut since Friday’s anemic US jobs growth data showed nonfarm payrolls increasing by only 114k in July, down from 179k in June. Some of the year’s hottest stocks have taken a beating as investors rush into safe-haven assets like US Treasury bonds, with 10-year yields briefly hitting their lowest levels since mid-2023.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • A USD 40 mn ethane pipeline: A consortium of state-owned companies plans to construct a USD 40 mn pipeline to transport imported liquified ethane gas derived from US shale gas from Alexandria's Dekheila Port to Sidi Kerir Petrochemicals and the Egyptian Ethylene and Derivatives Company.
  • AfDB mulls funding our 1.1 GW wind farm: The African Development Bank (AfDB) is considering financing the 1.1 GW wind farm in the Gulf of Suez being carried out by Saudi Arabia’s ACWA Power and Hassan Allam Holding.
  • Qardy banks on fresh pre-seed funding to boost MSME financing: Digital lending marketplace Qardy has closed a USD seven-figure pre-seed investment round to boost its services in Egypt and fast-track its planned expansion into Saudi Arabia.

☀️ TOMORROW’S WEATHER- Mercury is peaking at a high 38°C before simmering to a moderate low of 26°C by night, according to our favorite app. Sahel and Alexandria are seeing cooler weather, with a high of 33-34°C and a low of 25°C.

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