Planet Finance is feeling upbeat and we hardly know how to react. The financial press is continuing to ride a wave of optimism out of the tail-end of the World Economic Forum in Davos. As we reported in yesterday’s EnterprisePM, market-watchers and economists no longer seem so sure there will be a global recession this year as China’s reopening, lower energy prices, and cooling inflation give the lie to months of doom-mongering. Expect upward revisions when the IMF releases its updated 2023 growth projections at the end of the month.

Markets are less certain a recession is coming, says JPM: Seven of nine asset classes tracked by JPMorgan are now signaling less than a 50% chance of recession, a major about turn from just a few months ago when investors saw an economic downturn as a foregone conclusion, Bloomberg reports. “Most asset classes have been steadily pricing out recession risks helped by China reopening, the collapse of gas prices in Europe and larger than expected inflation downshifting in the US,” said a strategist at the US investment bank.

Other indicators aren’t quite as optimistic: The S&P 500 is still suggesting a 73% probability of recession, but this is down markedly from 98% last year.

The eurozone could avoid recession altogether this year, the Financial Times reports, citing a closely-watched survey by Consensus Economics which it says “illustrates the sharp about-turn in global economic sentiment in the past couple of weeks.” The survey had been predicting recession for the bloc as recently as last month, but January’s results saw economists predict 0.1% growth on average in 2023.

AND- IPO in an unexpected locale: Abraj Energy Services will go public in March by selling up to 49% of the company on the Muscat Stock Exchange, as Oman looks to join a listings boom that has swept the Gulf in recent years. The IPO could raise as much as USD 500 mn. Our friends at EFG Hermes are among the advisors working on the offering. (Statement | Bloomberg)

ALSO- Saudi management consultancy TAM is looking to list on Tadawul’s small-cap market in the first half of this year, Bloomberg reports.

	EGX30	16,119	+0.3% (YTD: +10.4%)
	USD (CBE)	Buy 29.80	Sell 29.89
	USD at CIB	Buy 29.79	Sell 29.89
	Interest rates CBE	16.25% deposit	17.25% lending
	Tadawul	10,725	+0.4% (YTD: +2.4%)
	ADX	10,187	-0.1% (YTD: -0.2%)
	DFM	3,353	-0.0% (YTD: +0.5%)
	S&P 500	3,973	+1.9% (YTD: +3.5%)
	FTSE 100	7,771	+0.3% (YTD: +4.3%)
	Euro Stoxx 50	4,120	+0.6% (YTD: +8.6%)
	Brent crude	USD 87.63	+1.7%
	Natural gas (Nymex)	USD 3.17	-3.1%
	Gold	USD 1,944.90	+0.2%
	BTC	USD 22,582	-2.2% (YTD: +36.9%)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 2.15 bn (26.4% above the 90-day average). Regional investors were net buyers. The index is up 10.4% YTD.

In the green: Housing and Development Bank (+10.3%), Juhayna Food Industries (+6.0%) and Palm Hills Development (+5.1%).

In the red: Alexandria Containers and Cargo Handling (-2.3%), Eastern Company (-1.9%) and Heliopolis Housing and Development (-1.7%).

Asian markets are largely up in early trading this morning and futures suggest Europe will open to a sea of green as markets continue to ride the recent wave of optimism. But the tide may already be turning on Wall Street, where futures are firmly in the red ahead of open later on today.