The US Federal Reserve cut interest rates for the second time, this time by 25 bps, bringing them to 4.5%-4.75%, it said in a press release on Thursday. The decision comes just a day after Donald Trump was voted president, with many investors now expecting a less certain path for monetary easing due to an anticipated rise in inflation when Trump begins to implement US tariffs and extend tax cuts.

The path ahead is uncertain, Powell says: Powell said he does not expect any “near-term” impact from the elections on monetary policy — but further down the line, nothing is set in stone. “We don’t know what the timing and substance of any policy changes will be,” Powell said. “We therefore don’t know what the effects on the economy would be, specifically whether and to what extent those policies would matter for the achievement of our goal variables: maximum employment and price stability.”

Powell left the door open for a potential policy pause during a press conference, refusing to rule anything out — though he committed to further rate cuts in the future, Reuters reports. The next meeting will take place on 17-18 December.

Market reax: The S&P 500 and Nasdaq both notched record highs, extending a rally that began in the wake of Trump’s reelection.

EGX30

31,267

+0.7% (YTD: +25.6%)

USD (CBE)

Buy 49.24

Sell 49.37

USD (CIB)

Buy 49.22

Sell 49.32

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,131

+0.3% (YTD: +1.4%)

ADX

9,449

-0.2% (YTD: -1.3%)

DFM

4,640

-0.1% (YTD: +14.3%)

S&P 500

5,996

+0.4% (YTD: +25.7%)

FTSE 100

8,072

-0.8% (YTD: +4.4%)

Euro Stoxx 50

4,803

-1.0% (YTD: +6.2%)

Brent crude

USD 73.87

-2.3%

Natural gas (Nymex)

USD 2.67

-0.9%

Gold

USD 2,695

-0.4%

BTC

USD 76,453.00

-0.1% (YTD: +80.7%)

THE CLOSING BELL-

The EGX30 rose 0.7% at Thursday’s close on turnover of EGP 4.3 bn (1.8% above the 90-day average). Local investors were the sole net buyers. The index is up 25.6% YTD.

In the green: Elsewedy Electric (+4.5%), Ezz Steel (+2.6%), and TMG Holding (+2.4%).

In the red: Oriental Weavers (-2.3%), Edita (-2.0%), and Emaar Misr (-1.2%).

CORPORATE ACTIONS-

Edita will pay out EGP 400 mn in dividends, amounting to EGP 0.571 a share, in addition to some EGP 35.5 mn to its employees, from the company’s income for 2023, according to an EGX disclosure (pdf).

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