US markets fell yesterday and Asian shares have followed suit this morning as traders digest a hot US inflation report that some fear made it even less likely that the Federal Reserve will cut interest rates in March.

Why rates interest matters to the stock market: Lower rates traditionally = more money seeking (hopefully) better returns in public equities. Traders also generally figure that lower rates = better fortunes ahead for many types of companies on the back of more consumer spending and cheaper borrowing for corporates.

What happened yesterday: The Dow, S&P and Nasdaq all dropped 1.4-1.9% yesterday after data showed consumer prices in the US had risen in January by the most in eight months. Observers had expected inflation to continue cooling, but it ticked up to 3.1% on an annual basis.

Where we stand right now: The Nikkei, Kospi, and Hong Kong’s Hang Seng are down in early trading; it’s Hong Kong’s first day of trading this week after the Luna New Year holiday, while Shanghai is still closed. US futures have firmed up but still point to a soft (but not outrageous) opening on Wall Street, and European equities look set to dip at the opening bell.

MEANWHILE- BTC hit the USD 50k mark for the first time in two years, rallying on the same rate-cut hopes that equities traders are eyeing — and on optimism that the US government’s approval of spot BTC exchange-traded funds last month could herald larger mainstream acceptance, Reuters reports. BTC was trading at around USD 49.7k as of midnight.

TASI

12,404.59

+0.9% (YTD: +3.7%)

MSCI Tadawul 30

1,604.88

+0.9% (YTD: +3.5%)

USD : SAR (SAMA)

3.75 Sell

3.75 Buy

Interest rates

6% repo

5.5% reverse repo

EGX30

28,604.54

+0.4% (YTD: +14.9%)

ADX

9,351.22

+0.3% (YTD: -2.4%)

DFM

4,219.31

+0.2% (YTD: +3.9%)

S&P 500

4,953.17

-1.4% (YTD: +3.8%)

FTSE 100

7,512.28

-0.8% (YTD: -2.9%)

Euro Stoxx 50

4,689.28

-1.2% (YTD: +3.7%)

Brent crude

82.50

+0.6%

Natural gas (Nymex)

1.69

-4.5%

Gold

2,007.20

-1.3%

BTC

49,552.03

-1% (YTD: +103.6%)

THE CLOSING BELL-

The TASI rose 0.8% yesterday on turnover of SAR 11.5 bn. The index is up 3.7% YTD.

In the green: Tanmiah (+9.9%), Salama (+8.7%) and Albaha (+7.1%).

In the red: LUMI (-5.1%), Atheeb Telecom (-4%) and Riyadh Cables (-3.9%).

CORPORATE ACTIONS-

#1- Riyad Bank’s BoD has proposed a dividend of SAR 0.75 per share to eligible shareholders for the second half of FY 2023, according to a disclosure to Tadawul yesterday. A distribution date will be determined following the approval of the general assembly, it added.

#2- Shareholders of Anaam Group will vote Monday, 4 March on a proposed 75% capital hike to SAR 551.3 mn, according to a disclosure to Tadawul yesterday. It earlier issued the prospectus (pdf) for the capital increase through a SAR 236.3 mn rights offering.

Tags: