Today’s Trading Playbook
KEY THEMES
Volatility in global markets continues as U.S. equities slipped on Tuesday, yet U.S. future indices point to a green open today. Furthermore, Asian shares are rebounding in early trading, while Brent oil prices remain above USD71/bbl. Furthermore, the yield on the U.S. 10-year Treasury upped marginally to 1.47%, following Fed Chair Jerome Powell’s hints that the Fed may speed up the pace of its bond-buying taper at its meeting later this month.
Here at home, each of the EGX 30 and EGX 70 EWI ended the last day of November with good performance, gaining 1.6% and 1.3%, respectively. Meanwhile, for November as a whole, both indices closed in the red territory; EGX 30 slipped 0.2%, whereas EGX 70 EWI tumbled 7.7%.
As we step into the last month of 2021, we broke down the EGX 30 historical performance for the month of December since 2005 in which EGX 30 averaged +5%. We note that since 2005, the monthly close in December came 75% of the time (12 months) in the positive territory and averaged +8%, whereas 25% of the time (4 months) its monthly close was in the red and averaged -4%. With global market volatility in mind, it remains to be seen how the EGX 30’s historical performance will fare against the backdrop of conflicting global variables.
Now, on to the top news and analysis for the day.