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Tuesday, 13 September 2022

Interest rate hikes are hitting home sales around the world

Aggressive interest rate hikes are starting to take their toll on home sales around the world as homeowners feel the squeeze and buyers drop out of the market, according to Bloomberg. Some of the world’s most overheated markets, including Australia and Canada, have already seen double-digit declines in prices as borrowing costs rise at the fastest pace in decades, reversing the pandemic-era boom. “We will observe a globally synchronized housing market downturn in 2023 and 2024,” Hideaki Hirata, a former Bank of Japan economist said

IPO WATCH- Kuwaiti family-run conglomerate Alghanim Industries is considering a potential USD 1 bn IPO and is in talks with Credit Suisse to quarterback the transaction, Bloomberg reports, citing unnamed sources.

ALSO IN PLANET FINANCE-

  • Turkey found a money tree: The Central Bank of Turkey has shrugged its shoulders after USD 5.5 bn in unaccounted money showed up in the country’s monthly balance of payments in July. The country has received USD 24.4 bn in mystery funds during the first seven months of the year. (Bloomberg)
  • Russia’s starting to feel the pinch: Soaring oil and gas prices handed Russia a RUB 500 bn surplus in the first half of the year. But in the space of a month — as oil prices fell and Moscow cut gas flows to Europe — it fell to just RUB 137 bn. (Financial Times)
  • EU considers oil + gas tax to bail out economies amid energy crisis: The EU is considering taxing excess profits made by oil and gas companies on the back of the war in Ukraine as countries face paying hundreds of bns of EUR to protect households and industries from skyrocketing gas and power prices. (Reuters)

Up

EGX30

10,434

+0.8% (YTD: -12.7%)

Up

USD (CBE)

Buy 19.30

Sell 19.41

Up

USD at CIB

Buy 19.33

Sell 19.39

None

Interest rates CBE

11.25% deposit

12.25% lending

Up

Tadawul

12,022

+0.7% (YTD: +6.6%)

Up

ADX

9,930

+1.4% (YTD: +17.0%)

Up

DFM

3,402

+1.2% (YTD: +6.5%)

Up

S&P 500

4,110

+1.1% (YTD: -13.8%)

Up

FTSE 100

7,473

+1.7% (YTD: +1.2%)

Up

Euro Stoxx 50

3,646

+2.1% (YTD: -15.2%)

Up

Brent crude

USD 94.00

+1.3%

Up

Natural gas (Nymex)

USD 8.25

+3.2%

Up

Gold

USD 1,740.60

+0.7%

Up

BTC

USD 22,371

+3.4% (YTD: -51.8%)

THE CLOSING BELL-

The EGX30 rose 0.8% at yesterday’s close on turnover of EGP 1.64 bn (44% above the 90-day average). Local investors were net buyers. The index is down 12.7% YTD.

In the green: Fawry (+3.5%), Telecom Egypt (+3.0%) and Eastern Company (+2.8%).

In the red: Rameda (-4.6%), Orascom Construction (-2.4%) and Abu Qir Fertilizers (-1.6%).

Asian markets are all solidly in the green this morning, but futures suggest a mixed open elsewhere as the trading day rolls on. Look for the Dow, S&P, Nasdaq and TSX composite to open in green, as will Paris’ CAC 40. The EuroStoxx50, FTSE 100 and DAX 30 all look set to come under selling pressure at the opening bell.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

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