Think food prices are high now? The UN is warning that they could skyrocket another 22% and forecasts that the global food supply will continue to feel the impact of the conflict far beyond the current season. A report (pdf) from the UN’s Food and Agriculture Organization (FAO) finds that the “sudden and steep” reduction in Black Sea grain and sunflower exports will likely continue to raise food prices in the months to come, a problem that will be exacerbated if the war drags on and energy prices remain high.

Soaring oil prices shake already-struggling pandemic-beaten sectors, like airlines: After the conflict sent Brent crude prices to highs not seen in over a decade, investors are fleeing oil-dependent industries, the Financial Times reported yesterday. This includes airlines, as well as companies that depend on oil for their manufacturing process: American Airlines’ shares are down by almost a fifth this month, while shares of tyre manufacturer Goodyear Tire & Rubber have also been hit hard. The possibility of oil continuing to spike has left financial markets on edge, with economists at Goldman Sachs noting that the world could soon face one of the “largest energy supply shocks ever.”

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 601 mn (35.4% below the 90-day average). Local investors were net buyers. The index is down 12.3% YTD.

In the green: Abu Qir Fertilizers (+3.5%), CIB (+2.4%) and Mopco (+2.1%).

In the red: Qalaa Holdings (-4.1%), Heliopolis Housing (-3.8%) and MM Group (-2.7%).

It’s a mixed open in Asia this morning: Chinese shares are in the red with the Hang Seng suffering the heaviest losses (-3.1%) after Beijing placed the entire city of Shenzhen under lockdown following a spike in covid cases. Others such as the Nikkei (+0.6%) and the ASX (+1.1%) are seeing gains.

It’s a different story in Europe and the US, where stock futures have exchanges to open in the green across the board. Oil prices are continuing to slide this morning on optimism that Russia and Ukraine are edging closer to a peace agreement. Brent was down 2.8% to USD 109 a barrel at the time of dispatch.