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Monday, 17 October 2022

EU wants a price cap on its gas markets + More US economists expect recession

The EU wants to cap prices in its benchmark gas market: The European Commission will propose an emergency price cap on transactions on the benchmark Dutch TTF, in the region’s latest bid to tame spiraling energy prices, according to an official document seen by Bloomberg and the Financial Times. The executive could adopt the package this Tuesday, after which EU leaders would discuss it during a summit this weekend.

EU officials are sick of market machinations: The proposed cap will “help avoid extreme volatility and price hikes, as well as speculation which could lead to difficulties in the supply of natural gas to some member states,” the document reads. Commission President Ursula von der Leyen has said that the market no longer reflects Europe’s energy reality amid a crisis spurred by Moscow cutting off its oil and gas supplies to the continent.

Shocker: US economists are predicting a recession sometime in the next 12 months, as the Fed continues its tightening cycle in a bid to control inflation and employers begin to cut jobs. On average, economists surveyed by the Wall Street Journal now peg the probability of the US entering a recession over the next 12 months at 63%, up from 49% in the WSJ’s July survey. A majority of those polled also expect the Fed to go overboard with its monetary tightening cycle, triggering what they think is “unnecessary economic weakness” in the process.

And yet another Gulf IPO: Abu Dhabi-based data analytics firm Bayanat — a subsidiary of AI firm Group 42 — is looking to raise USD 171 mn by selling a 28.5% stake in the company, Bloomberg reports.




+2.0% (YTD: -15.9%)



Buy 19.62

Sell 19.73



Buy 19.65

Sell 19.71


Interest rates CBE

11.25% deposit

12.25% lending




-0.1% (YTD: +1.1%)




+0.8% (YTD: +15.2%)




+0.8% (YTD: +5.7%)


S&P 500


-2.4% (YTD: -24.8%)


FTSE 100


+0.1% (YTD: -7.1%)


Euro Stoxx 50


+0.6% (YTD: -21.3%)


Brent crude

USD 92.22



Natural gas (Nymex)

USD 6.25




USD 1,651.70




USD 19,247

+0.8% (YTD: -58.2%)


The EGX30 rose 2.0% at yesterday’s close on turnover of EGP 935.96 mn (4.1% below the 90-day average). Foreign investors were net sellers. The index is down 15.9% YTD.

In the green: EFG Hermes (+4.4%), Madinet Nasr Housing and Development (+4.0%) and Oriental Weavers (+3.7%).

In the red: Cleopatra Hospitals (-2.0%), Mopco (-0.7%) and Telecom Egypt (-0.2%).

Asian markets are up across the board in early trading this morning, and futures suggest a similarly optimistic start for major European and US indices when they open their week a little later on.

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