A relief rally for risk assets — but does it have legs?

Isthe “everything rally” a lasting bull market or a flash in the pan? Investors rushed into stocks, bonds, gold, and crypto assets in December as markets were flooded with bets that the Federal Reserve could start lowering interest rates. But Wall Street is divided over whether the “everything rally” represents a bull market or just a “fleeting sugar high” from the end of the tightening cycle, writes the Wall Street Journal.

Analysts agree that the tightening cycle is over — but when will it pivot? Economists don’t expect the Fed to start cutting rates until at least July 2024, with the majority of participants forecasting a rate trim of only half a percentage point of less in 2024, from its current 22-year high of 5.25-5.5%, a recent Financial Times poll showed.

IN GLOBAL MARKETS- India has overtaken Hong Kong to become the world’s seventh-largest stock market by market capitalization as “optimism grows” about the country’s economy, CNBC reports.

THE CLOSING BELL-

The TASI rose 0.8% yesterday on turnover of SAR 7.5 bn. The index is up 8.6% YTD.

In the green: AWPT (+7.8%), Naseej (+6.3%) and Aslak (+4.2%).

In the red: AlBaha (-7.1%), Enaya (-6.4%) and Amana Ins. (-4.4%).

Asian shares are having a good morning, with most benchmarks in the green (or nearly there) at dispatch time. Futures suggest US and European markets will open in the green later today, and there’s still a chance shares in Toronto could follow suit.

CORPORATE ACTIONS-

Burgerizzr put on hold its move to the Tadawul’s main market after it failed to fulfill some requirements related to the move, it said in a disclosure to Tadawul yesterday. The Nomu listed company was one of two to say in recent weeks it was looking to move up to the main market.

The board of United Assurance Cooperative will ask shareholders to approve an SAR 300 mn capital increase via a rights offering. Proceeds are earmarked to fund expansion and improve its solvency ratio, bringing its total capital to SAR 700 mn. The call still needs approval from the Ins. Authority and the CMA. No financial advisor has yet been appointed.

The board of Saudi Enaya Cooperative Ins.will ask shareholders to approve an SAR 150 mn capital increasevia a rights offering, bringing its total capital to SAR 380 mn. The recommendation by the BoD will still require an approval from the Ins. Authority and CMA.No financial advisor has yet been appointed.