{"id":560366,"date":"2021-02-24T04:10:46","date_gmt":"2021-02-24T04:10:46","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/24\/what-the-markets-are-doing-on-24-february-2021\/"},"modified":"2021-02-24T04:10:46","modified_gmt":"2021-02-24T04:10:46","slug":"what-the-markets-are-doing-on-24-february-2021","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/24\/what-the-markets-are-doing-on-24-february-2021\/","title":{"rendered":"What the markets are doing on 24 February 2021"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-10\"><\/a> <strong>El Erian asks: When is stimulus too much stimulus? <\/strong>The Fed needs to think about how to start winding down its printing presses or the possible USD 4 tn in fiscal stimulus proposed by the Biden administration risks rising inflation and blunting the central bank\u2019s policy toolkit, Allianz chief economist Mohamed El Erian writes for <a href=\"https:\/\/www.ft.com\/content\/6254971a-96dd-41a9-a037-acf3ffa6275b\">the Financial Times<\/a>.<\/p>\n<p><strong>Endless liquidity helps stave off corporate bankruptcy but it brings risks of its own:<\/strong> Expectations for a surge in inflation risks steepening the yield curve and increasing market volatility. And with monetary policymakers hesitant to turn off the taps, the Fed could find itself in a lose-lose position: \u201clet the risk of financial instability rise and threaten the real economy or intervene further in the functioning of markets \u2026 and risk more distortions that undermine efficient financial and economic resource allocations,\u201d he writes.<\/p>\n<p><strong>The answer?<\/strong> El Erian doesn\u2019t suggest reneging on fiscal stimulus efforts, but to find a way for the Fed to back off its injections of liquidity, currently running at USD 120 bn a month. How this will be possible he doesn\u2019t say, though he does point out that the task would be easier if regulators got serious about managing the risk building in the non-bank financial sphere.<\/p>\n<p><strong>Chinese financing for overseas energy projects has shrunk to its lowest level <\/strong><strong>since the global financial crisis<\/strong> due to negotiation barriers caused by covid-19 and difficulties with loan repayment, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-02-23\/china-s-overseas-energy-financing-plummets-as-virus-slows-deals?sref=mmeFTDW1\">Bloomberg<\/a> reports. <a href=\"https:\/\/www.bu.edu\/cgef\/#\/2020\/Country\">Boston University figures<\/a> show state-owned financing institutions in China have already scaled back loans to developing countries by some 43% last year as they grapple with recessions that have made repayment all but impossible. Chinese lenders have instead started providing concessional loans to increase their chances of reimbursement for financing energy projects. The lion\u2019s share of financing last year went towards the construction of a natural gas pipeline in Nigeria.<\/p>\n<p><strong>Nightmare on Wall Street: The Biden administration is interested in looking into a<\/strong> <strong>financial transaction tax<\/strong> as it considers how to protect investors following the GameStop trading mania, a White House spokesperson told <a href=\"https:\/\/edition.cnn.com\/2021\/02\/21\/investing\/white-house-stock-tax-gamestop\/index.html\">CNN Business<\/a>. A tax could potentially be introduced on GameStop-esque trades in a bid to deter destabilizing market activity, the spokesperson suggested. The thought of a so-called \u201cTobin tax\u201d is despised by Wall Street which has warned that such a levy would end up harming retail investors by increasing trading costs and curbing liquidity.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>11,417<\/p>\n<\/td>\n<td>\n<p>-1.72% (YTD: +5.27%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.63<\/p>\n<\/td>\n<td>\n<p>Sell 15.73<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 15.63<\/p>\n<\/td>\n<td>\n<p>Sell 15.73<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>8.25% deposit<\/p>\n<\/td>\n<td>\n<p>9.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>9,152<\/p>\n<\/td>\n<td>\n<p>+0.8% (YTD: +5.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>5,671<\/p>\n<\/td>\n<td>\n<p>+0.2% (YTD: +12.4%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>2,547<\/p>\n<\/td>\n<td>\n<p>+0.2% (YTD: +2.2%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>3,881<\/p>\n<\/td>\n<td>\n<p>+0.1% (YTD: +3.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>6,626<\/p>\n<\/td>\n<td>\n<p>+0.2% (YTD: +2.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 64.98<\/p>\n<\/td>\n<td>\n<p>-0.6%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 2.87<\/p>\n<\/td>\n<td>\n<p>-0.3%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,810.60<\/p>\n<\/td>\n<td>\n<p>+0.3%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 50,194.21<\/p>\n<\/td>\n<td>\n<p>-1.26%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>The EGX30 fell 1.2% yesterday<\/strong> on turnover of EGP 1.76 bn (17.7% above the 90-day average). Local investors were net sellers. The index is up 5.27% YTD.<\/p>\n<p><strong>In the green: <\/strong>MM Group (+5.4%) and Orascom Development (+4.7%).<\/p>\n<p><strong>In the red: <\/strong>Orascom Financial Holding (-4.2%), Orascom Investment Holding (-4.0%) and Fawry (-3.7%).<\/p>\n<p><strong>It\u2019s a sea of red in <\/strong><strong>Asian markets in early trading this morning<\/strong> and futures suggest US markets will follow suit to open in the red.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>El Erian asks: When is stimulus too much stimulus? The Fed needs to think about how to start winding down its printing presses or the possible USD 4 tn in fiscal stimulus proposed by the Biden administration risks rising inflation and blunting the central bank\u2019s policy toolkit, Allianz chief economist Mohamed El Erian writes for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[102,116,101,93,72,119,1318,2869,1887,724,1914,122,69,117,897],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-560366","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-capital-markets","tag-china","tag-development-finance","tag-energy","tag-enterpriseam","tag-financial-markets","tag-fiscal-policy","tag-gamestop","tag-mohamed-el-erian","tag-monetary-policy","tag-nigeria","tag-planet-finance","tag-tax","tag-us","tag-wall-street","wpautop","entry"],"acf":{"mongo_id":"e1ec5c71-6e48-4bd5-9ba6-cdde7c33039c","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[560339],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What the markets are doing on 24 February 2021 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/02\/24\/what-the-markets-are-doing-on-24-february-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What the markets are doing on 24 February 2021\" \/>\n<meta property=\"og:description\" content=\"El Erian asks: When is stimulus too much stimulus? 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The Fed \u201cmischaracterized what inflation is and it fell behind,\u201d El Erian\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":559501,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/24\/what-the-markets-are-doing-on-24-january-2021\/","url_meta":{"origin":560366,"position":1},"title":"What the markets are doing on 24 January 2021","author":"enterpriseam admin","date":"24 January 2021","format":false,"excerpt":"It\u2019s earnings week in the US of A with Apple, Microsoft and Tesla all set to make announcements alongside more than a fifth of the S&P 500, the Wall Street Journal notes. Boeing and McDonald\u2019s will also announce results, \u201cshedding more light on how businesses performed at the end of\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":563386,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/29\/us-stocks-hit-new-record-highs\/","url_meta":{"origin":560366,"position":2},"title":"US stocks hit new record highs","author":"enterpriseam admin","date":"29 June 2021","format":false,"excerpt":"US stocks hit fresh record highs yesterday putting them on track for one their best first halves ever, while treasury yields dropped as investor concerns about an end to monetary stimulus eased. Tech companies led the Nasdaq to close almost 1% in the green, while the S&P 500 closed slightly\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":637397,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/11\/15\/what-were-tracking-on-15-november-2017\/","url_meta":{"origin":560366,"position":3},"title":"What we\u2019re tracking on 15 November 2017","author":"enterpriseam admin","date":"15 November 2017","format":false,"excerpt":"White House considering Mohamed El Erian for Federal Reserve Vice Chair: The White House is considering Allianz\u2019 chief economic adviser and Egypt\u2019s favourite economic whiz Mohamed El Erian for vice chairman of the Federal Reserve, sources confirmed to CNBC on Tuesday. El Erian replace Stanley Fischer, who vacated his seat\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":568072,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/what-the-markets-are-doing-on-16-december-2020\/","url_meta":{"origin":560366,"position":4},"title":"What the markets are doing on 16 December 2020","author":"enterpriseam admin","date":"16 December 2020","format":false,"excerpt":"The EGX30 rose 0.1% yesterday on turnover of EGP 1.6 bn (15.4% above the 90-day average). Foreign investors were net sellers The index is down -20.8% YTD.In the green: Cleopatra Hospital (+3.9%), Ezz Steel (3.7%) and Sidi Kerir Petrochemicals (+3.5%).In the red: Dice (-7.4%), Egyptian Iron & Steel (-3.3%) and\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":575237,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/07\/last-nights-talk-shows-mohamed-el-erian-on-egypts-post-covid-economic-recovery\/","url_meta":{"origin":560366,"position":5},"title":"Last night\u2019s talk shows: Mohamed El-Erian on Egypt\u2019s post-covid economic recovery","author":"enterpriseam admin","date":"7 October 2020","format":false,"excerpt":"Celebrations of the 6 October anniversary and Egypt\u2019s 1973 military victory dominated the airwaves last night, with most airing President Abdel Fattah El Sisi\u2019s speech in commemoration of the day: Kelma Akhira\u2019s Lamees El Hadidi (watch, runtime: 1:29), Al Hayah Al Youm (watch, runtime: 1:45), and Masaa DMC\u2019s Ramy Radwan\u2026","rel":"","context":"In &quot;Enterprise+: Last Night\u2019s Talk Shows&quot;","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=560366"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/560366\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/560339"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=560366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=560366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=560366"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=560366"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=560366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}