Investors are ditching the greenback: The USD fell to three-month lows yesterday, putting it on track for its worst monthly performance in a year, after Federal Reserve Governor Christopher Waller hinted at the possibility of rate cuts in the coming months, the Financial Times wrote. The USD index — which tracks the greenback against a basket of currencies — dipped to its lowest since mid-August yesterday, and has lost 3.6% this month in a sign that financial conditions are easing.

What he said: “I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%, Waller — a hawkish member of the Fed board — said yesterday. If inflation continues to decline for “several more months … we could start lowering the policy rate.”

US treasuries gained ground: Yields on US government debt fell to two-month lows following Waller’s comments. The rate on the 10-year bond slipped further to 4.35%, and has now fallen from above 5% in just five weeks.

QUOTABLE-

  • Gulf states look ‘very, very attractive’ to Ray Dalio: Bn’aire hedge fund investor Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates and recent subject of a negative take in a high-profile biography that suggests his secret sauce wasn’t a method, but his whim, emphasized the GCC’s fast-emerging appeal to global investors amid a changing world order. (CNBC)

WHISPERS-

  • Troubled Austrian conglomerate Signa is too messy for anybody to rescue, Bloomberg writes, “even for hedge funds and Gulf investors,” suggesting the PIF is taking a pass on investing.

TASI

11,100.92

+0.2% (YTD: +5.9%)

MSCI Tadawul 30

1,430.79

+0.4% (YTD: -31.4%)

USD : SAR (SAMA)

3.75

–

Interest rates

6% repo

5.5% reverse repo

EGX30

25,122

-3.0% (YTD: +72.1%)

ADX

9,541.13

+0.3% (YTD: -6.6%)

DFM

4,008.61

+0.4% (YTD: +20.2%)

S&P 500

4,547.20

-0.1% (YTD: +18.3%)

FTSE 100

7,446.44

-0.2% (YTD: -0.2%)

Euro Stoxx 50

4,335.32

-0.4% (YTD: +14.4%)

Brent crude

USD 81.27

+1.6%

Natural gas (Nymex)

USD 2.76

-1.1%

Gold

USD 2,046.60

+0.7%

BTC

USD 37,473.57

+1.4% (YTD: +127.3%)

THE CLOSING BELL-

The TASI rose 0.2% yesterday on turnover of SAR 4.9 bn. The index is up 5.9% YTD.

In the green: Wafrah (+4%), Sulaiman Al Habib (+3.7%) and YSCC (+3.5%).

In the red: Al Amar (-3.9%), Salama (-3.5%) and Al Rajhi Takaful (-3.2%).

It is looking like another mixed session for Asian markets in early trading this morningwith indices split between gains and losses. Futures suggest a mixed open in Europe later this morning, while major US benchmarks are likely to rise at the opening bell.

CORPORATE ACTIONS-

Change of shareholders at Al Rajhi Takaful- Al Rajhi Cooperative Insurance Company (Al Rajhi Takaful) said it has received a letter from Al Rajhi Insurance Company Limited Bahrain stating 10.6 mn shares — amounting to a stake of 26.5% — was transferred to investment portfolios of shareholders on a pro rata basis, it said in a disclosure to Tadawu l yesterday. The transfer will result in a change in Al Rajhi Takaful’s major shareholders, it added, stopping short of providing more information.

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