Short-term pain for long-term gain is Wall Street’s motto at the moment
Short-term pain for long-term gain is Wall Street’s motto at the moment: Option trading shows that implied volatility has climbed, but the actual level of price swings has mellowed down, according to a Sundial Capital note seen by Bloomberg. That means that “in the short term, options traders are ‘smarter,’ while in the medium-term, investors have been,” the note read. Sundials’ note comes after the S&P 500’s worst week in almost three months. The firm looked at eight similar circumstances for the index historically and found that a rally always followed within two months of the S&P being within 1% of a record low while volatility was high, indicating a rally could be in the cards soon.
Pray for dispatch: Tech firm Intuit has agreed to purchase leading email marketing platform Mailchimp for around USD 12 bn in a cash and stock transaction, it announced in a statement on Monday.
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EGX30 |
11,149 |
-0.3% (YTD: +2.8%) |
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USD (CBE) |
Buy 15.66 |
Sell 15.76 |
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USD at CIB |
Buy 15.66 |
Sell 15.76 |
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Interest rates CBE |
8.25% deposit |
9.25% lending |
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Tadawul |
11,410 |
+0.3% (YTD: +31.3%) |
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ADX |
7,823 |
+0.8% (YTD: +55.1%) |
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DFM |
2,885 |
+0.2% (YTD: +15.8%) |
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S&P 500 |
4,480.70 |
+0.9% (YTD: +19.3%) |
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FTSE 100 |
7,016 |
-0.3% (YTD: +8.6%) |
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Brent crude |
USD 75.46 |
+2.5% |
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Natural gas (Nymex) |
USD 5.38 |
-1.5% |
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Gold |
USD 1,796.60 |
+0.1% |
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BTC |
USD 48,208 |
+3.2% (as of midnight) |
THE CLOSING BELL-
The EGX30 fell 0.3% at yesterday’s close on turnover of EGP 1.6 bn (3.6% above the 90-day average). Foreign investors were net sellers. The index is up 2.8% YTD.
In the green: Cleopatra Hospitals (+5.9%), Ezz Steel (+2.9%) and EKH (+1.7%).
In the red: Pioneers Holding (-4%), Raya (-3.7%) and Ibnsina Pharma (-3.3%).
Asian markets are patchy in early trading this morning while US shares and most European markets look set to fall when they open later today.