What the markets are doing on 13 January 2021
The liquidity boom propping up economies could hurt asset prices: With global liquidity set to reach double global GDP at USD 175 tn by the end of 2021 thanks to stimulus from governments and central banks worldwide, much of it could flow into the real economy rather than assets as lockdowns are lifted and regular economic activity resumes, writes Michael J. Howell for the Financial Times. As liquidity moves away from asset markets to the real economy, buying power could shift from investors to consumers, putting downward pressure on stock prices.
The SPAC-driven EV frenzy definitely isn’t going to end in tears… The manic inflows into electric vehicle companies taken public by special purpose acquisition companies (SPACs) last year shows no signs of abating. The nine companies that debuted via SPACs last year now have a combined market cap of USD 60 bn, but according to FT analysis they have just USD 139 mn in expected revenues. What’s more, several of them have never earned a single greenback or even have any products.
Also worth knowing this morning:
- Visa is walking back on a planned USD 5.3 bn acquisition of US-based fintech startup Plaid due to an antitrust lawsuit challenging the bid, reports the Wall Street Journal.
- Hotel occupancy in Dubai surged to 71% in December after plunging to 23% last year, suggesting that the city’s decision to continue welcoming visitors through the second wave of the pandemic is paying off, according to Bloomberg.
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EGX30 |
11,340 |
+0.5% (YTD: +4.6%) |
|
|
USD (CBE) |
Buy 15.61 |
Sell 15.71 |
|
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USD at CIB |
Buy 15.61 |
Sell 15.71 |
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|
Interest rates CBE |
8.25% deposit |
9.25% lending |
|
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Tadawul |
8,884 |
+0.2% (YTD: +2.2%) |
|
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ADX |
5,258 |
+0.4% (YTD: +4.2%) |
|
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DFM |
2,701 |
+0.1% (YTD: +8.4%) |
|
|
S&P 500 |
3,801 |
– (YTD: +1.2%) |
|
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FTSE 100 |
6,754 |
-0.7% (YTD: +4.5%) |
|
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Brent crude |
USD 56.73 |
+1.9% |
|
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Natural gas (Nymex) |
USD 2.75 |
– |
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Gold |
USD 1,855 |
+0.2% |
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BTC |
USD 34,867 |
+2.0% |
The EGX30 rose 0.5% yesterday on turnover of EGP 1.7 bn (21.8% above the 90-day average). Local investors were net sellers. The index is up 4.6% YTD.
In the green: Dice (+4.3%), Oriental Weavers (+3.1%) and Juhayna (+3.0%).
In the red: Credit Agricole (-6.2%), Ezz Steel (-3.1%) and Export Development Bank (-3.0%).
Asian markets were mixed in early trading this morning: Bourses in China. Hong Kong and Australia were in the red but shares in Japan and Korea were making steady gains. Futures suggest a mixed open in Europe, with shares expected to rise in the UK and Germany, but fall in France.