Tuesday was a good day for global markets, with both the S&P 500 and the Euro Stoxx 600 closing at all-time highs following a turbulent few weeks triggered by US President Donald Trump introducing new tariffs. The benchmark S&P 500 closed up 0.2% at a record 6,130 and the Euro Stoxx 600 closed at 558.

The rationale: “I think people are still trying to digest everything going on with not only tariffs and how that could impact things but also general valuations … We feel like the market is pretty expensive,” Villere & Co’s Sandy Villere told Reuters.

Investors are keeping an eye out for: The Federal Reserve’s next move. The odds of a rate cut took another hit after inflation came in hotter than expected in January, with the consumer price index rising 3% y-o-y, the highest increase since June.

“You've got not only the tariff situation, which I think is going to be more sabre-rattling and negotiating than anything long-term; the other thing is inflation that could be a little more stubborn than people think and I don't think the Fed can cut interest rates as fast as originally expected,” Villere added.

What about European markets? It wasn’t just the pan-European index that hit a fresh record yesterday, German’s benchmark index also hit a new record high after rising 0.2% — banking and defence stocks drove the rally, Reuters writes, adding that investors are hopeful peace talks between Russia and Ukraine will likely increase military spending.

MARKETS THIS MORNING-

It’s another morning with Asian markets mixed in early trading — Japan’s Nikkei is down 0.4%, the Hang Seng is down 0.4%, meanwhile the Kospi is looking at gains of 1.8% and the Shanghai Composite is up 0.5%.

EGX30

30,588

+0.5% (YTD: +2.9%)

USD (CBE)

Buy 50.59

Sell 50.73

USD (CIB)

Buy 50.59

Sell 50.69

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,334

+0.6% (YTD: +2.5%)

ADX

9,619

+0.7% (YTD: +2.1%)

DFM

5,375

-0.2% (YTD: +4.2%)

S&P 500

6,130

+0.2% (YTD: +4.2%)

FTSE 100

8,767

0.0% (YTD: +7.3%)

Euro Stoxx 50

5,534

+0.3% (YTD: +13.0%)

Brent crude

USD 75.82

+0.8%

Natural gas (Nymex)

USD 4.01

+7.6%

Gold

USD 2,955

+1.9%

BTC

USD 94,942

-1.6% (YTD: +1.5%)

THE CLOSING BELL-

The EGX30 rose 0.5% at yesterday’s close on turnover of EGP 3.8 bn (4.8% above the 90-day average). International investors were the sole net sellers. The index is up 2.9% YTD.

In the green: EFG Holding (+4.5%), Telecom Egypt (+4.2%), and Egypt Kuwait Holding -EGP (+4.2%).

In the red: EgyptAlum (-2.1%), GB Corp (-1.3%), and Oriental Weavers (-1.0%).

CORPORATE ACTIONS-

That’s a wrap on Beltone’s acquisition of Sodic for Securitization: Our friends at Beltone Holding finalized an EGP 8.6 mn acquisition of Sodic’s securitization arm, Sodic for Securitization, according to a disclosure (pdf) to the EGX.

REFRESHER- Sodic for Securitization announced last March that it would offload all of its shares to Beltone Financial Holding after its general assembly approved the decision.

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