Back to the complete issue
Thursday, 25 February 2021

What the markets are doing on 25 February 2021

Bond rout incoming? Global bond investors are enduring their worst start to a year since 2015 amid signs that stimulus and the rollout of covid-19 vaccines will fuel a significant pickup inflation, the Financial Times reported. The Bloomberg Barclays Multiverse index — which tracks some USD 70 tn in fixed-income assets — is down 1.9% year-to-date, putting it on course to deliver its worst quarter since 2018 and the poorest 1Q performance in six years. Investors have primarily sold off investment-grade debt, which with its super-low yields makes it particularly vulnerable to rising inflation.

There are fears that rising yields could put an end to the recent mega-rally in global stocks: While the historically low — and in some cases, negative — yields have helped fuel the rush into stocks, the increase in rates is beginning to cause problems for equities. The FTSE All-World Index has fallen 2.5% from its record high last week and the tech-hea

vy Nasdaq is down 6% this month. “The move higher is starting to spook other markets,” Gregory Peters, a senior fund manager at PGIM Fixed Income, told the salmon-colored paper. “Stocks are squishy, and corporate bonds are squishy . . . It’s causing people to freak out a little.”

Over in Europe, rising shipping costs are being passed onto consumers: Inflation in Europe is approaching its highest level in nearly a year as manufacturers hike prices to keep pace with rising shipping and input costs, the FT said. Facilities manufacturing consumer goods that rely on commodities like steel are witnessing supply chain disruptions that have forced some to scale back production while rising prices on the global market are beginning to be passed onto consumers.

Luxury ride-hailing app Wheely is coming to the Middle East: The Russian company, which already operates in London and Paris, will open a Dubai office and apply for a license in the coming weeks as a “hedge” against continued lockdowns in Europe, its CEO told Bloomberg. The company will also soon be targeting more than USD 30 mn in a new funding round to finance its expansion across the pond in the US.

Biden wants to make the US less reliant on chip and medical imports: The US president has ordered a 100 day supply chain review of industries including semiconductors and pharmaceuticals in a bid to promote US production and protect the US market from supply chain shocks that occurred during covid-19, NBC News reports. Though the order did not single out China, it included a directive to reduce the US’ dependence on rival nations.

Up

EGX30

11,435

+0.2% (YTD: +5.4%)

None

USD (CBE)

Buy 15.63

Sell 15.73

None

USD at CIB

Buy 15.63

Sell 15.73

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

9,116

-0.4% (YTD: +4.9%)

Down

ADX

5,630

-0.7% (YTD: +11.6%)

Down

DFM

2,508

-1.6% (YTD: +0.6%)

Up

S&P 500

3,925

+1.1% (YTD: +4.5%)

Up

FTSE 100

6,659

+0.5% (YTD: +3.1%)

Up

Brent crude

USD 67.29

+0.4%

Down

Natural gas (Nymex)

USD 2.85

-0.9%

Down

Gold

USD 1,794.50

-0.2%

Up

BTC

USD 50,548.96

+0.2%

The EGX30 rose 0.2% yesterday on turnover of EGP 1.59 bn (8.7% above the 90-day average). Local investors were net buyers. The index is up 5.44% YTD.

In the green: MM Group (+11.6%), Orascom Development Holding (+2.6%) and Cleopatra Hospital (+2.0%).

In the red: Fawry (-3.9%), Sodic (-2.4%) and Orascom Investment Holding (-2.1%).

Asian markets are up in early trading this morning and futures suggest markets in the US and Europe will follow suit when they open later today.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.