What’s hot in the US? Share buybacks. What’s not? Capex spending: Share buybacks in S&P 500 companies more than doubled y-o-y to reach a record USD 234.6 bn in 3Q2021, with an uncertain outlook leading corporates to help secure returns for their shareholders by buying back their own stock, Bloomberg reports. The uncertainty is also putting a damper on capex spending, which failed to recover to pre-covid levels during the quarter despite low borrowing costs, “as a shift in consumer demand has fueled lots of uncertainty for businesses and makes it difficult for companies to plan ahead,” one analyst says. Capex borrowing will become more expensive as the US Federal Reserve begins raising interest rates next year, while the taper of the Fed’s asset purchase program will make it all the more important for “robust” investments to underpin a long-term recovery.

ALSO- European gas prices are continuing to spiral: Gas and electricity prices have hit new record highs in Europe, threatening the continent’s economic recovery and putting industries on the brink of shutdown, as Russia restricted gas flows to Europe compounding shortages already aggravated by nuclear outages in France. (Bloomberg)

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 1.18 bn (12.9% below the 90-day average). Foreign investors were net sellers. The index is up 6.3% YTD.

In the green: Rameda (+6.5%), Speed Medical (+3.7%) and Orascom Development Egypt (+3.1%).

In the red: Raya Holding (-2.1%), Elsewedy Electric (-1.4%) and Mopco (-1.1%).

Major Asian benchmarks are largely flat at dispatch time this morning. Shares in Shanghai are just barely in the red, while the Kospi, Nikkei and Hang Seng are weakly in the green. Futures suggest all major European benchmarks are going to open in the green, while shares on Wall Street will face gentle selling pressure at the opening bell.