Global growth prospects appear to be weakening
Global growth prospects appear to be weakening after the EU cut its GDP forecast and data out of China pointed to slowing economic activity:
- The EU has downgraded its 2022 eurozone growth forecast to 2.7% from 4% in February as the war in Ukraine takes its toll. Draft forecasts seen by Bloomberg also see inflation averaging 6.1% this year, almost double what it predicted three months ago.
- China’s economic activity drops as covid lockdowns bite: China’s main measure of consumer activity, retail sales, plunged 11.1% y-o-y in April, while industrial production unexpectedly fell 2.9%, the FT reports, much of it on the back of the government’s covid zero policy.
MEANWHILE- Vodacom is considering a bond issuance to fund its EUR 2.34 bn acquisition of a majority stake in Vodafone Egypt which the company agreed with UK parent Vodafone Group last year, Bloomberg reports.
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EGX30 |
10,462 |
-0.7% (YTD: -12.5%) |
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USD (CBE) |
Buy 18.23 |
Sell 18.32 |
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USD at CIB |
Buy 18.25 |
Sell 18.32 |
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Interest rates CBE |
9.25% deposit |
10.25% lending |
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Tadawul |
12,915 |
-1.8% (YTD: +14.5%) |
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ADX |
9,493 |
0.0% (YTD: +11.8%) |
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DFM |
3,419 |
+2.8% (YTD: +7.0%) |
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S&P 500 |
4,008 |
-0.4% (YTD: -15.9%) |
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FTSE 100 |
7,465 |
+0.6% (YTD: +1.1%) |
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Euro Stoxx 50 |
3,685 |
-0.5% (YTD: -14.3%) |
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Brent crude |
USD 114.24 |
+2.4% |
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Natural gas (Nymex) |
USD 8.02 |
-0.4% |
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Gold |
USD 1,823.60 |
+0.5% |
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BTC |
USD 30,097 |
-3.8% (YTD: -35.2%) |
THE CLOSING BELL-
The EGX30 fell 0.7% at yesterday’s close on turnover of EGP 817.87 mn (6.4% below the 90-day average). Local investors were net buyers. The index is down 12.5% YTD.
In the green: EFG Hermes (+3.3%), MM Group (+3.1%) and Sidi Kerir Petrochemicals (+1.1%).
In the red: TMG Holding (-4.7%), Orascom Construction (-4.6%) and Orascom Development Egypt (-4.4%).
Most Asian markets are marginally in the green this morning, and shares in Europe and the US are on course to follow suit later today, according to stock futures.