Cost of borrowing is higher for economies with poor climate performance
Developed nations lagging behind on green goals may soon find themselves in a pool of sovereign debt: Recent research has shown that countries that perform poorly on transitioning to a low-carbon economy are prone to suffering from increased sovereign borrowing costs, liquidity crunches and a lack of reserves to finance economic recovery amid climate shocks or natural disasters, Bloomberg reports. These economies could be in line for a 26 basis-point rise in yields for every 1 percentage point increase in carbon emissions, the study showed, indicating that countries with lower carbon emissions incur lower risk premiums on sovereign debt.
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EGX30 |
10950.24 |
+0.61% (YTD: +0.97%) |
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USD (CBE) |
Buy 15.65 |
Sell 15.75 |
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USD at CIB |
Buy 15.65 |
Sell 15.75 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
11,141.03 |
+0.7% (YTD: +28.21%) |
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ADX |
7,681.53 |
-0.03% (YTD: +52.25%) |
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DFM |
2,904.10 |
+0.6% (YTD: +16.54%) |
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S&P 500 |
4,486.23 |
+0.2% (YTD: +19.44%) |
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FTSE 100 |
7,125.78 |
+0.2% (YTD: +10.30%) |
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Brent crude |
USD 70.80 |
-0.4% |
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Natural gas (Nymex) |
USD 3.88 |
-0.5% |
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Gold |
USD 1,796.20 |
-0.7% |
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BTC |
USD 48,103.35 |
-2.04% (as of midnight) |
THE CLOSING BELL-
The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 2.57 bn (45.5% above the 90-day average). Regional investors were net buyers. The index is up 1% YTD.
In the green: Egyptian Resorts Company (+10.0%), Ibnsina Pharma (+5.1%) and Pioneers Holding (+4.1%).
In the red: Orascom Development Egypt (-2.0%), AMOC (-1.7%) and Medinet Nasr Housing (-1.7%).
Asian shares are mixed this morning, with leading indexes in Japan and Shanghai up while shares in Hong Kong and Korea are in the red. Shares in Europe and on Wall Street also look set to open in the red today, if futures are any indication, while Bay Street is still clinging to the green.