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Tuesday, 12 January 2021

What the markets are doing on 12 January 2021

Is the crypto bubble about to burst? Bitcoin lost nearly 26% of its value on Sunday and Monday, its biggest two-day slump since March, amid a fierce selloff, reports Bloomberg. The currency fell as low as USD 33.1k yesterday after having reached an all time high of nearly USD 42k on 8 January. “It’s to be determined whether this is the start of a larger correction,” Vijay Ayyar, business development head at Singapore’s crypto exchange Luno said.

China is on track to challenge Wall Street and London to become the world’s most important financial center, according to bn’aire hedge fund manager Ray Dalio, who told the Financial Times that 2020 was a watershed year for what he sees as the world’s next preeminent financial power. “China already has the world’s second largest capital markets, and I think they will eventually vie for having the world’s financial center,” the Bridgewater founder said, comparing Beijing’s rise to the transition from the British to the American empire.

Saudi Arabia is looking to raise upwards of USD 5 bn in a bond-market comeback designed to bolster its state coffers, which have been battered by low oil prices, Bloomberg reports. Although Brent has recovered to more than USD 55 per barrel, this is still far below the USD 80 price the kingdom needs to balance its budget.

Twitter’s shares fell 7% on Monday following the suspension of Agent Orange’s account as investors worried the move might shift interest away from the platform, reports Reuters.

Hyundai and Apple plan to begin joint production of autonomous electric cars in the US in 2024 under the terms of a partnership agreement to be signed in March, Reuters reports, citing a Korean news outlet.

Up EGX30 11,279 +0.6% (YTD: +4.0%)
Up USD (CBE) Buy 15.59 Sell 15.69
Up USD at CIB Buy 15.60 Sell 15.70
None Interest rates CBE 8.25% deposit 9.25% lending
Up Tadawul 8,869 +0.6% (YTD: +2.1%)
Up ADX 5,237 +1.2% (YTD: +3.8%)
Up DFM 2,698 +0.9% (YTD: +8.3%)
Down S&P 500 3,799 -0.7% (YTD: +1.2%)
Down FTSE 100 6,798 -1.1% (YTD: +5.2%)
Down Brent crude USD 55.62 -0.7%
Up Natural gas (Nymex) USD 2.75 +1.7%
Up Gold USD 1,850 +0.8%
Down BTC USD 34,800 -9.7%

The EGX30 rose 0.6% yesterday on turnover of EGP 1.5 bn (11.5% above the 90-day average). Regional investors were net sellers. The index is up 4.0% YTD.

In the green: Cleopatra Hospital (+3.3%), Orascom Development Egypt (+2.3%) and Sidi Kerir Petrochemicals (+2.3%).

In the red: SODIC (-2.9%), Dice (-1.5%) and Ibnsina Pharma (-1.4%).

Most Asian markets are up in early trading this morning and futures suggest European markets will open in the red later today.

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