The Federal Reserve won’t start cutting interest rates until at least July 2024, a FinancialTimes poll showed, with nearly 60% of the participants expecting cuts to begin in 3Q 2024 or later. Some 75% of the 40 economists surveyed believe that the Fed will only trim rates by half a percentage point or less in 2024 from its current 22-year high of 5.25-5.5%. Most of them, however, agreed that the Fed’s rate hike cycle is now over.

Wall Street expects officials to act sooner: Investors rushed into stocks, bonds, gold, and risk assets at the end of last week as markets were flooded with bets that the Fed will begin cutting rates as early as March, expecting rates to stand at around 4% by the end of next year.

TASI

11,174.02

+0.3% (YTD: +6.6%)

MSCI Tadawul 30

1,435.00

+0.1% (YTD: -27.2%)

USD : SAR (SAMA)

3.75

–

Interest rates

6% repo

5.5% reverse repo

EGX30

24,704

-1.7% (YTD: +69.2%)

ADX

9,481.07

-0.4% (YTD: -7.2%)

DFM

3,969.17

-0.2% (YTD: +19%)

S&P 500

4,565.61

-0.03% (YTD: +19.1%)

FTSE 100

7,515.38

+0.3% (YTD: +0.9%)

Euro Stoxx 50

4,483.26

+0.7% (YTD: +18.2%)

Brent crude

USD 74.40

-3.6%

Natural gas (Nymex)

USD 2.57

-5.1%

Gold

USD 2,046.60

+0.5%

BTC

USD 43,985.92

+0.3% (YTD: +155.3%)

THE CLOSING BELL-

The TASI rose 0.3% yesterday on turnover of SAR 5.8 bn. The index is up 6.6% YTD.

In the green: Nadec (+9.9%), Riyadh Cables (+9.4%) and Enaya (+8.2%).

In the red: Naqi (-6.8%), UCA (-4.8%) and Teco (-3.2%).

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