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Tuesday, 9 November 2021

Stocks, crypto hit new record highs

US stocks hit new record highs: The S&P 500 closed above 4,700 for the first time yesterday as strong earnings, positive payroll data and fading covid concerns pushed the benchmark index to achieve its longest run of gains since 2017, Bloomberg says. The index closed 0.1% in the green as investors reacted to the passage of Biden’s bumper infrastructure bill by piling into materials and energy stocks. The tech-heavy Nasdaq ended the day in the red due to the sell-off in Tesla stock (-4.9%) triggered by Elon Musk’s Twitter followers voting for him to sell a 10% in the company.

FOMO takes over: “Fear over inflation and supply chain headwinds have been replaced by fear of missing out in the record-high rally,” said one analyst. “Robust demand and economic momentum continue to drive earnings growth. Coronavirus concerns have also dissipated amid vaccine developments and widespread inoculation rates.”

BTC also surged to new all-time highs, eclipsing the USD 67k handle for the first time ever. The digital currency rose as much as 2.5% on Tuesday, pushing it to USD 67,778. The latest movements have raised the value of the crypto market to more than USD 3 tn.

Fed rate hike next year? That’s what one central bank official indicated yesterday, according to the Financial Times. The Fed last week announced it would start curtailing its stimulus programme this month and fully phase it out by June but said it would hold off on raising interest rates until reaching maximum employment — a target that the central bank’s vice chairman, Richard Clarida, thinks may be reached next year.

Down

EGX30

11497.51

-0.5% (YTD: 6%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,847

+0.04% (YTD: 36.3%)

Up

ADX

8,182

+1% (YTD: 62.2%)

Up

DFM

3,104

+0.2% (YTD: 24.6%)

Up

S&P 500

4,702

+0.1% (YTD: 25.2%)

Up

FTSE 100

7,311

+0.09% (YTD: 13%)

Up

Brent crude

USD 83.43

+0.8%

Down

Natural gas (Nymex)

USD 5.42

-0.2%

Up

Gold

USD 1,827

0.0%

Up

BTC

USD 67,626

+7.4% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.5% yesterday on turnover of EGP 674.3 mn (55.3% below the 90-day average). Foreign investors were net sellers. The index is up 6.0% YTD.

In the green: Rameda (+4.7%), Egyptian Resorts Company (+3.8%) and Ibnsina Pharma (+3.4%).

In the red: AMOC (-6.4%), GB Auto (-2.2%) and EFG Hermes (-1.8%).

Asian markets are mixed this morning, with the Nikkei and ASX weakly in the green and the Hang Seng, Shanghai and Kospi all slipping ever-so-slightly into the red. Futures suggest the CAC 40 is the only major European benchmark set to open in the green later today — and that the Dow, S&P and Nasdaq will all start the day in the red at the opening bell this aftenroon.

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