Fed signals it will stay the course on rate cuts: The US Federal Reserve left rates unchanged at 5.25-5.5% in line with expectations, citing solid expansion of economic activity, elevated but easing inflation, strong job gains, and low unemployment, the central bank said in a press release.

Bullish on growth: The Fed raised its forecast for US economic growth this year, saying that it expects GDP to expand by 2.1% this year, compared to previous forecasts of 1.4%. “The economy is performing well,” Fed chair Jerome Powell said during a presser (watch, runtime: 1:11:22) after the Fed wrapped up its two-day meeting. That said, he added that there will be challenges before the economy moves into a soft landing, with core inflation projections currently sat at 2.6% in 2024, above the Fed’s 2% target.

Sit tight for rate cuts this year: Policymakers signaled that the central bank is still on track for rate cuts this year, with a three-quarters of a percentage point cut expected before the end of 2024. More officials are now expecting three cuts in 2024.

Market reax: The Fed’s meeting sent investors to market, leading to a spike in the S&P 500, which closed at a record 5,225 on Wednesday. Tech-heavy Nasdaq 100 rose 1.2% while gold rose 1.6% to as much as USD 2,200 per ounce for the first time. Two-year Treasury yields fell 0.09 percentage points to 4.60%.

THE MARKET THIS MORNING-

Traders this morning welcomed the US Federal Reserve’s guidance: All of the major Asian benchmarks we follow are up in early trading — and three of them are soaring, up nearly 2%: The Nikkei, Kospi, and Hang Seng.

Sound smart: The Nikkei has just hit an all-time high. Traders were already in a good mood, having welcomed the Bank of Japan’s move earlier this week to raise interest rates for the first time since 2007. Prior to the move, Japan was the world’s last remaining negative-rates regime.

Futures are also up, with everything from S&P, Nasdaq, and Dow futures to wagers on European equities and oils on the rise.

EGX30

28,589

-0.3% (YTD: +14.8%)

USD (CBE)

Buy 46.89

Sell 47.02

USD at CIB

Buy 46.9

Sell 47.0

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,739

-0.5% (YTD: +6.5%)

ADX

9,269

+0.1% (YTD: -3.2%)

DFM

4,291

+0.4% (YTD: +5.7%)

S&P 500

5,225

+0.9% (YTD: +9.5%)

FTSE 100

7,737

0.0% (YTD: +0.1%)

Euro Stoxx 50

5,000

-0.2% (YTD: +10.6%)

Brent crude

USD 85.95

-1.6%

Natural gas (Nymex)

USD 1.70

+0.2%

Gold

USD 2,208

+1.0%

BTC

USD 67,752

+7.5% (YTD: +45.4%)

THE CLOSING BELL-

The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 3.1 bn (36% below the 90-day average). Local investors were net buyers. The index is up 14.8% YTD.

In the green: Orascom Construction (+5.0%), Eipico (+4.0%), and Madinet Masr (+2.2%).

In the red: E-Finance (-5.4%), Orascom Development Egypt (-3.9%), and Palm Hills Developments (-3.0%).

CORPORATE ACTIONS-

Mopco to hand out dividends: Misr Fertilizers Production Company (Mopco) will pay out a dividend of EGP 2.0 per share starting 7 April, according to an EGX disclosure (pdf).

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