Gold prices bounced back yesterday, lifted by a weaker USD and expectations that weak US job-opening data could signal the economy is cooling — and that the Fed might consider going to a rate cut of more than a quarter point this month, Reuters reports. The report showed job openings in July were at their lowest level in 3.5 years.

REMEMBER- All eyes are on tomorrow’s US jobs report for insights into the US economy and the Fed’s next moves after Fed boss Jay Powell’s emphasized the risks of a weaker labor market. A soft August labor figure could stoke fears of a sharper economic slowdown and tip the scales towards a 50 bps rate.

Gold could see a short-term dip on the back of the elevated positioning, Suki Cooper, an analyst at Standard Chartered told Bloomberg, noting that gold prices are higher than in any previous rate-cutting cycle. However, Cooper sees gold prices reaching USD 2.7k per ounce by 2025.

THE MARKETS THIS MORNING-

Asian markets are thoroughly mixed in early trading this morning, with the Nikkei and Hang Seng down slightly, the Kospi leading the gainers (+1.1%), the ASX 200 up nearly 0.4%, and Shanghai flat.

Futures point to European equities dipping at the opening bell, while Wall Street and Bay Street are on course to open mostly flat.

EGX30

30,998

-0.1% (YTD: 24.5%)

USD (CBE)

Buy 48.43

Sell 48.56

USD (CIB)

Buy 48.43

Sell 48.53

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,128

-0.4% (YTD: +1.3%)

ADX

9,367

-0.1% (YTD: -2.2%)

DFM

4,365

-0.1% (YTD: +7.5%)

S&P 500

5,520

-0.2% (YTD: +15.7%)

FTSE 100

8,270

-0.4% (YTD: +6.9%)

Euro Stoxx 50

4,848

-1.3% (YTD: +7.2%)

Brent crude

USD 72.94

+0.3%

Natural gas (Nymex)

USD 2.14

-0.4%

Gold

USD 2,525.10

0.0%

BTC

USD 58,023.40

-0.3% (YTD: +37.2%)

THE CLOSING BELL-

The EGX30 fell 0.1% at yesterday’s close on turnover of EGP 4.6 bn (18.3% above the 90-day average). Regional investors were the sole net buyers. The index is up 24.5% YTD.

In the green: Edita (+5.0%), Telecom Egypt (+2.8%), and Emaar Misr (+2.6%).

In the red: Beltone Holding (-2.3%), Madinet Masr (-2.1%), and Mopco (-1.6%).

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