Boomtime: Traders are celebrating increasing signs that the Federal Reserve is managing to bring inflation in line without crushing the US economy by buying everything from small caps to meme stocks, Bloomberg reports . “We are now at a stage where people feel obligated to fully commit capital. Hawkish Fed is not an excuse right now, and claiming recession is hard to justify as well,” one strategist told the newswire.

Behind the bullishness: Retreating inflation is fuelling expectations that the Federal Reserve will soon call time on its tightening cycle, which so far hasn’t resulted in the US economy falling into recession. Hiring, consumer confidence, and growth have all remained strong, defying fears that the highest interest rates in more than 20 years could provoke a so-called hard landing.

Not everyone is optimistic: Northwestern Mutual Wealth Management Chief Investment Officer Brent Schutte still believes that the US economy could be headed towards a recession. “I’m pushing in the opposite direction. The equity market will have some difficult months ahead,” he said.

EGX30

17,339

-0.3% (YTD: +18.8%)

USD (CBE)

Buy 30.84

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

18.25% deposit

19.25% lending

Tadawul

11,848

-0.5% (YTD: +13.1%)

AD X

9,761

0.0% (YTD: -4.4%)

DFM

4,037

+0.2% (YTD: +21.0%)

S&P 500

4,582

+1.0% (YTD: +19.3%)

FTSE 100

7,694

0.0% (YTD: +3.3%)

Euro Stoxx 50

4,467

+0.4% (YTD: +17.7%)

Brent crude

USD 84.99

+0.9%

Natural gas (Nymex)

USD 2.64

+1.7%

Gold

USD 1,999.90

+0.7%

BTC

USD 29,365

+0.1% (YTD: +77.7%)

THE CLOSING BELL-

The EGX30 fell 0.3% at Thursday’s close on turnover of EGP 2.39 bn (24.9% above the trailing 90-day average). Local investors were net buyers. The index is up 18.8% YTD.

In the green: ADIB (+1.4%), Qalaa Holdings (+1.3%) and Ibnsina Pharma (+0.9%).

In the red: Cleopatra Hospitals (-3.1%), Elsewedy Electric (-2.6%) and Ezz Steel (-2.5%).

Tags: