China makes the tiniest rate cut to spur economic growth
China cuts lending rate as economy struggles: China’s central bank has cut one of its most important lending rates in a sign that the country is entering an easing cycle, the Financial Times reports. The marginal 5 bps cut to the one-year loan prime rate, which is used as a benchmark for bank loans, is the first that China has made since the outbreak of the pandemic in April 2020. In contrast to the vast majority of other developed economies, the decision suggests that China’s fiscal policymakers are turning dovish in an attempt to ease economic pressures brought on by a property slowdown, energy shortages and weakened consumer spending in recent months. Economists say the move could herald further easing next year.
ALSO- Plummeting natgas flows from Russia push up Europe energy prices: Wholesale gas prices in Europe continued to soar as temperatures dropped and natural gas flowing through Russia’s Yamal-Europe pipeline fell to its lowest level in more than a month. (Financial Times)
EGX30 |
11,482 |
-0.7% (YTD: +5.9%) |
|
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 |
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THE CLOSING BELL-
The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 1.01 bn (26.8% below the 90-day average). Local investors were net buyers. The index is up 5.9% YTD.
In the green: Ibnsina Pharma (+1.0%), TMG Holding (+0.5%) and Abu Qir Fertilizers (+0.4%).
In the red: AMOC (-5.3%), Orascom Development Egypt (-3.5%) and CIRA (-3.4%).
The Nikkei 225 is on a tear this morning, gaining 2% as of dispatch time, while shares in China and Hong Kong were weakly in the green. Shares in Europe and on Wall Street look set to follow suit when markets open later today, futures suggest.