Today’s Trading Playbook
KEY THEMES
US equities slipped notably on Monday’s session, pulled down by heavy tech stocks, following a breakdown in Facebook app, WhatsApp, and Instagram. The sudden breakdown came suspiciously just ahead of the testimony related to an ex manager at Facebook before Congress today, claiming the company is prioritizing profit over public good.
The silver lining of yesterday’s declines in the U.S. was the gains achieved by energy stocks, following Brent oil prices above USD80/bbl. This comes in light of OPEC+ decision yesterday to stick to gradual output hikes, adding only 400,000 barrels per day during the month of November. The upbeat outlook regarding oil prices, which took the oil towards its best levels since October 2018, refreshed inflation worries in different regions around the globe, including non-other than Asia, with Asian stocks broadly down in Early Tuesday’s trading. Meanwhile, US future indices are currently unchanged.
Here at home, we have a handful of listed names that are poised to benefit from the global inflation story, while many others are unfazed. Despite the EGX 30 is currently trading at a forward 2022e P/E of only 6.7x (i.e. an earnings yield of 15%), it’s the general risk off/on mode of global investors towards EMs that will set the bar for the status quo of Egypt’s large caps.
Now, on to the top news and analysis for the day.