The trade war is off to a bumpy start, as Trump’s tariff announcements on Wednesday triggered the worst week for US equities since the onset of the Covid pandemic, leading to the S&P 500 losing 9.1% through the week — including a 6.0% fall on Friday alone — erasing USD 5.4 tn in market value and the Nasdaq down 22.7% from its December peak.

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Tech stocks in particular had a rough week, with chip maker Nvidia dipping 10.3% throughout the week and Apple seeing its share price fall 13.3% throughout the same period. Companies with significant exposure to China also saw a sell off, while recession fears drove investors to sell shares in banks and energy companies.

Exchanges outside the US fared little better, with the UK’s FTSE 100 losing 7.0% in the week and the EURO STOXX 50 down 8.2%. Further afield, Japan’s Nikkei 225 clocked a 7.3% decline during the week, Hong Kong’s Hang Seng recorded a 3.5% fall, while Korea’s Kospi and China’s Shanghai index survived the week in a better shape — albeit still in the red.

Investors across the globe are looking to government bonds as a way to guard against market volatility. Ten-year US Treasury notes saw yields fall 12.2 basis points to a six month low, while government debt instruments in Germany and elsewhere also saw their yields drop significantly. “A lot of investors I've talked to have just said in this kind of environment, let's go to cash and just wait it out,” Cherry Lane Investments Partner Rick Meckler told Reuters.

Some are already warning of an incoming recession, including Barclays Global Research Chair Ajay Rajadhyaksha, who told the Financial Times that “if the reciprocal tariffs are not walked back by April 9, which I don’t think they will be, you will probably be looking at a recession in the United States and the European Union.” Fed head Jay Powell is also warning that the tariffs will lead to “higher inflation and slower growth,” limiting the reserve’s monetary policy wriggle room with a growing concern that the country could enter into a period of stagflation.

EGX30

31,700

-1.0% (YTD: +6.6%)

USD (CBE)

Buy 50.53

Sell 50.67

USD (CIB)

Buy 50.54

Sell 50.64

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,883

-1.2% (YTD: -1.3%)

ADX

9187

-0.8% (YTD: -2.5%)

DFM

4951

-1.5% (YTD: -4.0%)

S&P 500

5074

-6.0% (YTD: -13.7%)

FTSE 100

8055

-5.0% (YTD: -1.4%)

Euro Stoxx 50

4878

-4.6% (YTD: -0.4%)

Brent crude

USD 65.58

-6.5%

Natural gas (Nymex)

USD 3.84

-7.3%

Gold

USD 3,035.40

-2.8%

BTC

USD 82,917.00

-1.4% (YTD: -11.4%)

THE CLOSING BELL-

The EGX30 fell 1.0% at Thursday’s close on turnover of EGP 2.4 bn (31.3% below the 90-day average). Local investors were the sole net buyers. The index is up 6.6% YTD.

In the green: GB Corp (+6.8%), Orascom Development (+4.3%), and Fawry (+2.1%).

In the red: CIB (-3.3%), TMG Holding (-2.2%), and EgyptAlum (-1.6%).

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