{"id":544516,"date":"2022-03-08T03:37:32","date_gmt":"2022-03-08T03:37:32","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/08\/this-morning-global-shares-slipping-into-correction-territory\/"},"modified":"2022-03-08T03:37:32","modified_gmt":"2022-03-08T03:37:32","slug":"this-morning-global-shares-slipping-into-correction-territory","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/03\/08\/this-morning-global-shares-slipping-into-correction-territory\/","title":{"rendered":"THIS MORNING: Global shares slipping into correction territory"},"content":{"rendered":"

Good morning, friends and welcome to another really busy news day. <\/strong>Before we get this show on the road, a quick warning from your friendly neighborhood weather service:<\/p>\n

PSA #1- Close your windows \u2014 it\u2019s going to be another dusty day. <\/strong>The Egyptian Meteorological Authority is predicting another sandstorm<\/a> today across several cities including Cairo \u2014 and rain in other parts, including Alexandria. The mercury will reach a high of 25\u00b0C in Cairo today, with an overnight low of 14\u00b0C. Our favourite weather app doesn\u2019t see today\u2019s storm, but is claiming we could face winds and blowing sand on Thursday. Either way, be prepared.<\/p>\n

THE BIG STORY in financial markets here and abroad- Stocks are now well into <\/strong>correction territory<\/strong>, meaning benchmark indexes are now down more than 10% from a recent high.<\/p>\n

The EGX 30 slipped into correction yesterday<\/strong> after turmoil in global energy markets<\/a> caused the benchmark index to hit its lowest level since early October. Shares slid 3.6% during trading amid upheaval in the energy and other commodities markets, prompted by fears that the US and Europe could move to blockade Russian oil and gas exports. The index is now down 10.4% year-to-date, putting it in correction territory for the second time in less than a year.<\/p>\n

US stocks had their worst day in 17 months yesterday<\/strong> in response to the turmoil in the commodities markets. The S&P 500 re-entered correction territory falling almost 3% (its sharpest drop since May 2020), while the Nasdaq Composite is in a bear market, now down 18% YTD after sliding 3.7% during yesterday\u2019s session.<\/p>\n

Germany\u2019s DAX and the pan-European Euro Stoxx 50 became bear markets<\/strong> earlier in the day in Europe.<\/p>\n

Today isn\u2019t looking much better: <\/strong>Major Asian benchmarks including the Nikkei, Shanghai, ASX 200, and KOSPI are all in the red this morning, with the Hang Seng being the only one bucking the trend. Futures suggest it will be red as far as the eye can see in Europe at the opening bell. Shares in Toronto will face selling pressure, while Wall Street could yet open in the green.<\/p>\n

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WHAT\u2019S HAPPENING TODAY-<\/strong><\/p>\n

It\u2019s gadget day for the Apple faithful<\/strong> as the tech giant holds its traditional spring event. Pundits expect a new iPad Air, an updated entry-level iPhone SE, a Mac of some form and \u2014 possibly, for the first time in years \u2014 a standalone display. The event starts at 8pm CLT and you can tune in here on Apple\u2019s website<\/a> or here on its Youtube page<\/a>.<\/p>\n

Look out, semsars: The final vote in the House of Representatives on amendments <\/strong>to the law regulating commercial and real estate brokerage will be held in today\u2019s plenary session.<\/strong> After receiving initial approval<\/a> on Sunday, a further amendment to the bill outlining penalties was given a preliminary nod by lawmakers yesterday. Under the amendment, brokers could face up to two years in prison and fines ranging between EGP 50k and EGP 1 mn if they break the law, according to Ahram Online<\/a>.<\/p>\n

About the bill: <\/strong>The legislation<\/a> aims to bring real estate brokers into the formal economy and crack down on what policymakers say is illegal activity in the sector. It would set up an electronic registry for licensed brokers, set rules for their activities, and regulate the fees they charge.<\/p>\n

SMART POLICY #1- Bank accounts for all.<\/strong> Egyptians can open bank accounts without charge and with no minimum deposit starting today through the end of March as part of the Central Bank of Egypt\u2019s financial inclusion strategy, Al Mal<\/a> reported yesterday. Banks will also provide an additional number of services at no cost over the next three weeks in an effort to attract more of the unbanked into the financial system.<\/p>\n

SMART POLICY #2- Manufacturers will reportedly be required to include expiration dates on <\/strong>product labels<\/strong> starting May, according to new rules<\/a> issued by the Consumer Protection Agency.<\/p>\n

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<\/a> MARKET WATCH- The commodities crunch is accelerating across the globe: <\/strong>The implications of trying to shut out the world\u2019s second-largest commodity producer from the global economy are becoming clearer with each passing day. It was another day of chaos in commodities markets yesterday with everything from energy to metals and wheat seeing historic price moves as investors reckoned with the fallout from the conflict in Ukraine and the attempts by the West to isolate Russia\u2019s economy. Here\u2019s a snapshot:<\/p>\n