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Monday, 2 August 2021

What the markets are doing on 2 August 2021

Chinese stocks are recovering as investors look past rout: Exchange-traded funds focused on Chinese stocks saw USD 975 mn in net inflows last week — more than all other emerging nations monitored by Bloomberg combined — despite a meltdown at the start of the week triggered by regulatory concerns, according to Bloomberg.

US tightens China listing rules: US securities regulators will not allow Chinese companies to IPO unless they disclose more information about their legal structures and risk profiles, the Financial Times reports. The move comes in response to Beijing’s crackdown on overseas listings, which could give the government more power over Chinese private companies. China’s regulator has said it wants to talk with its American counterpart to find a compromise.

But last week’s wobble in Chinese bonds and equities only proves that the country is still key to global financial markets, according to a Financial Times opinion column. Despite talk of “economic decoupling” from China by successive US administrations, rising FDI inflows to the country and foreign investment in its equity stocks and government bonds indicate that the relationship between US and Chinese finance remains mutually beneficial. Still, there’s plenty of room for retaliation on both sides.

Up

EGX30

10,810

+0.6% (YTD: -0.3%)

None

USD (CBE)

Buy 15.65

Sell 15.74

None

USD at CIB

Buy 15.65

Sell 15.75

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,067

+0.49% (YTD: 27.4%)

Up

ADX

7,393

+1.02% (YTD: 46.5%)

Up

DFM

2,781

+0.6% (YTD: +35.6%)

Down

S&P 500

4,395

-0.5% (YTD: 18.8%)

Down

FTSE 100

7,032

-0.7% (YTD: 7.0%)

Down

Brent crude

USD 74.20

-1.5%

Up

Natural gas (Nymex)

USD 3.87

+1.4%

Down

Gold

USD 1,813.18

-0.2%

Down

BTC

USD 39,666

-4.9% (as of midnight)

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 1.91 bn (34.7% above the 90-day average). Regional investors were net buyers. The index is down 0.3% YTD.

In the green: Ezz Steel (+6.1%), Rameda (+5.6%) and Ibnsina Pharma (+3.1%).

In the red: Egyptian Resorts Company (-3.5%), Cleopatra Hospitals (-1.9%) and Speed Medical (-1.8%).

Asian markets are mixed today, with the Nikkei handily in the green while shares in Shanghai, Seoul’s Kospi and Hong Kong’s Hang Seng index were all in the red at dispatch time. Futures Wall Street will open in the green today, while Bay Street will be in the red at the opening bell.

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