The US economy added 227k jobs in November amid expectations of interest rate cuts for the third time this year before 2024 is out, according to data from the US Bureau of Labor Statistics on Friday. This marks a significant increase over October’s 36k new hires, giving the US Federal Reserve enough room to cut rates during its next meeting in December, with the implied probability of a reduction reaching close to 90%, according to a CME Group gauge, CNBC reports.

The unemployment rate slightly ticked up to 4.2% from 4.1% in October, the Guardian reports.

The labor market could be in for some headwinds once Trump takes office: US president-elect Donald Trump’s strategies might lead to a regression in employment rates if he chooses to go after “tns in tax cuts for the wealthy” and attempts to “slash public investments,” one expert said. Others believe that the results might be affected by Trump’s “mass deportation” plans, as the reference week for the figures was after the election, the Co-Director of the Center for Economic and Policy Research Dean Baker said.

And the path forward for rates is still uncertain: Some analysts believe the Fed should pause rate cuts, believing further rate cuts to be “unwise” while jobs pile up and inflation remains elevated, Economist Chris Rupkey said. One economist expects the Fed to pause cuts in January, and potentially go for one other cut in early 2025 before taking a longer pause.

MARKETS THIS MORNING-

Asian markets are mixed as investors digest growth data from Japan and inflation in China, with the Nikkei up 0.3%, Hong Kong’s Hang Seng trading flat, and South Korea’s Kospi down 2% following South Korean President Yoon Suk Yeol’s close brush with impeachment. Wall Street futures are unchanged after a record week for US stocks.

EGX30

31,061

+0.7% (YTD: +24.8%)

USD (CBE)

Buy 50.17

Sell 50.31

USD (CIB)

Buy 50.18

Sell 50.28

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

11,955

+0.2% (YTD: +0.2%)

ADX

9266

-0.1% (YTD: -3.3%)

DFM

4854

+0.7% (YTD: +19.6%)

S&P 500

6090

+0.3% (YTD: +27.7%)

FTSE 100

8309

-0.5% (YTD: +7.4%)

Euro Stoxx 50

4978

+0.5% (YTD: +10.1%)

Brent crude

USD 71.12

-1.4%

Natural gas (Nymex)

USD 3.08

-0.1%

Gold

USD 2659.60

+0.4%

BTC

USD 100,027.80

+0.1% (YTD: +136.7%)

THE CLOSING BELL-

The EGX30 rose 0.7% at yesterday's close on turnover of EGP 4.7 bn (12.3% above the 90-day average). Foreign investors were the sole net sellers. The index is up 24.8% YTD.

In the green: Telecom Egypt (+4.9%), Palm Hills Development Company (+4.5%) and Elsewedy Electric (+3.1%).

In the red: Ezz Steel (-2.1%), Juhayna (-1.2%) and Abu Dhabi Islamic Bank (-0.4%).

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