Investors dump Chinese shares following President Xi Jinping’s reelection: US-listed Chinese companies saw their shares slip during yesterday’s session as traders branded them “uninvestable,” CNBC reports. The Nasdaq index tracking Chinese firms, the Golden Dragon Index, saw a record one-day drop, closing down 14.4%, the FT writes. Foreign investors are worried that checks and balances on the Chinese president were weakened when he stacked the leadership with loyalists at this week’s party congress, giving rise to a greater risk of conflict with the US that could damage China’s economy.

PMIs flash recession in Europe + UK:

• Business activity in the eurozone dropped to its lowest level in nearly two years in October, indicating that the region is entering a recession as prices rise and economic production falls, according to the S&P Global flash purchasing managers’ index (pdf).
• Activity in the UK service sector fell at its fastest rate since January 2021, according to its PMI (pdf), confirming “the UK’s economic recessionary status in the last quarter of the year.”

THE CLOSING BELL-

The EGX30 rose 0.6% at yesterday’s close on turnover of EGP 1.2 bn (15.4% above the 90-day average). Regional investors were net sellers. The index is down 13.6% YTD.

In the green: Eastern Company (+4.6%), Alexandria Container and Cargo Handling (+3.7%) and Egypt Kuwait Holding-EGP (+3.1%).

In the red: Rameda Pharma (-5.2%), Telecom Egypt (-2.9%) and GB Auto (-2.6%).

Shares in China are under selling pressure again this morning while the Nikkei, Kospi and ASX are all in the green. Futures suggest shares in Europe and on Wall Street will face selling pressure at the opening bell later today.