The US Federal Reserve is expected to leave its benchmark interest rate unchanged at 5.25-5.5% during a two-day meeting that starts later today, the Financial Times reports.

Watch this space: Analysts think the Fed will signal on Wednesday (or in meeting minutes released later) that it is ready to start cutting rates by September. Recent data shows inflation is under control and the labor market is cooling off, with fewer job gains and rising layoffs.

The central bank of Japan and England will also meet this week, as we noted yesterday. Japan could go for a rate hike (its two-day meeting begins today), while the Bank of England looks set to make a cut when it meets on Thursday.

MEANWHILE- China targets bonuses + compensation for fund managers, bankers: China is intensifying its crackdown on financial sector compensation, extending its reach to mutual fund managers and bankers.

What’s happening? Managers at some state-owned funds have been ordered to return bonuses, as are Hong Kong-based executives at Citi and Everbright. Pundits see the clawbacks happening in the context of Xi Jinping emphasis that “new quality productive forces” (read: tech and manufacturing) should be prioritized as finance gets downplayed.

MARKETS THIS MORNING-

It’s red as far as the eye can see in Asia this morning. All five of the major equities benchmarks we follow are in the red, signaling a “meh” day for investors in Australia, Japan, South Korea, Hong Kong, and China. US and European stock futures are down in overnight trading.

TASI

12,121

-0.4% (YTD: +0.7%)

MSCI Tadawul 30

1,519

-0.34% (YTD: +1.9%)

NomuC

26,513

0.0% (YTD: +8.3%)

USD : SAR (SAMA)

USD 3.75

USD 3.75

Interest rates

6.0% repo

5.5% reverse repo

EGX30

28,851

-0.6% (YTD: +15.9%)

ADX

9,395

+0.8% (YTD: -1.9%)

DFM

4,308

+0.7% (YTD: +6.1%)

S&P 500

5,464

+0.1% (YTD: +14.5%)

FTSE 100

8,292

+1.0% (YTD: +7.2%)

Euro Stoxx 50

4,815

-1.0% (YTD: +6.5%)

Brent crude

USD 81.10

0.0%

Natural gas (Nymex)

USD 1.99

-0.8%

Gold

USD 2,439.10

+0.5%

BTC

USD 67,444

-0.9% (YTD: +59.6%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% yesterday on turnover of SAR 6.9 bn. The index is up 0.7% YTD.

In the green: Kingdom Holding Company (+9.5%), Saudi Automotive Services (+6.1%) and Tanmiah Food (+3.4%).

In the red: Bawan (-4.3%), Buruj Cooperative Ins. (-3.9%) and City Cement (-3.7%).

THE CLOSING BELL: NOMU-

The NomuC closed flat yesterday on turnover of SAR 41.4 mn. The index is up 8.3% YTD.

In the green: Osool and Bakheet Investment (+10.2%), Lana Medical (+9.6%) and Mulkia Investment (+8.9%).

In the red: Horizon Education (-5.6%), Knowledge Tower Trading (-5.5%) and Al Razi Medical (-5.2%)

CORPORATE ACTIONS-

Arabian Contracting Services earned regulatory clearance to increase its capital to SAR 550 mn through a bonus share issuance, the Capital Market Authority said in a statement. The increase will be funded by transferring SAR 50 mn from retained earnings. A general assembly meeting will be held within six months to finalize the increase and meet regulatory requirements.

Arabian Cement will distribute dividends of SAR 75 mn for 1H 2024, it said in a disclosureto Tadawul. Dividends will be distributed Thursday, 15 August.

Tags: