Market confidence returns as investors pile back into equity markets: Investors who had exited equity markets following US recession fears earlier this month have “sharply increased their holdings” in equity markets since last week’s rebound in global stock markets, the Financial Times reports, citing data from Deutsche Bank. Investors piled into big tech stocks, index options, and both cyclical and non-cyclical stocks, the bank said in a note seen by the FT.

The data represents what appears to be a “full recovery” for the US equity markets in just two weeks, US stock exchange operator Cboe Global Markets’ Mandy Xu said. The rebound follows a “brutal” sell-off that took place during the first week of August, which saw some indices hit multi-year lows and wiped USD tns from global stock markets.

Remember: Global stocks saw their best week in nine months last week after better-than-expected US inflation figures helped calm recession fears triggered by “alarming” US economic data.

Confidence in the US economy seems to be stronger than ever, despite many analysts just days ago warning of a looming recession. Some, including the Bank of America, argue that “this month’s ructions across markets have simply served to reinforce investor conviction in a Goldilocks macro environment” of stable inflation, sustainable economic growth, and healthy employment levels.

MARKETS THIS MORNING-

Asian markets are in the red this morning, carrying on yesterday’s losses seen on Wall Street and in Europe. Hong Kong’s Hang Seng is down 1.4%, Japan’s Nikkei is down 0.8%, and Korea’s Kospi is down 0.2%.

TASI

12,104

+0.7% (YTD: +1.1%)

MSCI Tadawul 30

1,506

+0.9% (YTD: -2.9%)

NomuC

25,991

+0.8% (YTD: +6.0%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

6.5% repo

5.5% reverse repo

EGX30

29,915

+2.0% (YTD: +20.2%)

ADX

9,317

+0.1% (YTD: -2.7%)

DFM

4,255

+0.4% (YTD: +4.8%)

S&P 500

5,597

-0.2% (YTD: +17.3%)

FTSE 100

8,273

-1.0% (YTD: +7.0%)

Euro Stoxx 50

4,858

-0.3% (YTD: +7.4%)

Brent crude

USD 77.20

-0.6%

Natural gas (Nymex)

USD 2.20

-0.1%

Gold

USD 2,554.40

+0.5%

BTC

USD 59,291.00

+0.3% (YTD: +40.7%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.7% yesterday on turnover of SAR 8.8 bn. The index is up 1.1% YTD.

In the green: Red Sea International (+10.0%), Zamil Industrial Investment (+9.9%) and Buruj Cooperative Ins. (+9.0%).

In the red: Cenomi Retail (-5.7%), Ayyan Investment (-3.7%) and Ataa Educational Company (-2.7%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.8% yesterday on turnover of SAR 63.7 mn. The index is up 6.0% YTD.

In the green: Mayar Holding (+15.5%), ASG Plastic (+13.3%) and United Mining Industries (+7.7%).

In the red: Mohamed Hadi Al Rasheed (-9.8%), Riyadh Steel (-8.3%) and Almuneef (-7.0%).

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