Traders are now expecting five quarter-point US interest rate hikes this year, as investors bet that continued economic recovery will give the central bank the policy room it needs to tame rising inflation, the Financial Times reports. A stronger than expected jobs report last week saw US treasury yields jump, with the benchmark 10-year yield hitting its highest in two years. But expectations for inflation remained steady as the market bet that recent price hikes would subside in the medium-to-long term — signaling confidence in the US economy despite the withdrawal of stimulus, analysts say. “The Fed’s control over the economy has just increased,” said one global bonds manager.

It’s getting chilly in Cryptoland: Investors are pulling huge amounts out of cryptocurrency assets, the Financial Times reports, adding to fears of an imminent crypto winter. Digital asset vehicles lost around USD 61 mn per week in January — their fastest outflows in at least a year — as the price of BTC fell from highs of nearly USD 69k in November to under USD 40k by the end of last month. Average daily crypto trading volumes, meanwhile, are at their lowest since last summer. High-growth asset classes like crypto and tech stocks have the most to lose from Federal Reserve tightening amid risk-off sentiment from investors.

Speaking of growth-asset struggles: A number of hedge funds investing in tech and other high-growth companies saw their worst January in years amid the stock sell-off, as tech shares were battered by the Fed’s positioning for an aggressive cycle of interest rate hikes, the Wall Street Journal reports.

THE CLOSING BELL-

The EGX30 rose 0.4% at yesterday’s close on turnover of EGP 625 mn (41.9% below the 90-day average). Regional investors were net buyers. The index is down 2.2% YTD.

In the green: Qalaa Holding (+9.5%), Medinet Nasr Housing (+4.6%) and Heliopolis Housing (+3.4%).

In the red: CIRA (-2.8%), Fawry (-1.5%) and Mopco (-1.1%).

There’s a whole lotta red spilling across Asia this morning, with Shanghai the lone major benchmark clinging to the green. Futures suggest a mixed open in Europe (London and Frankfurt up, Paris down) and that Wall Street will open in the red at the opening bell later today.