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Could 2024 be the year when the world completes its transition into a new era of expensive money? While investors are convinced that most of the world’s major central banks have ended the cycle of rate hikes — a sentiment that has led global stock and bond markets to rally in recent weeks — the implications of a “new economic order” where interest rates are generally higher are likely to become more evident in 2024, Reuters writes. Investors are betting that the US Federal Reserve could trim rates by around 1.5% to 4% by the end of the year.
Business and consumers are going to face fresh challenges: Everyone, from individual consumers to countries, will have to figure out how to readjust to a high interest rate environment, the newswire writes. While consumers will earn more on their savings, they will have to cope with borrowing rates that could be more than twice as high and some companies will have to restructure their debt.
ALSO WORTH NOTING:
- BTC nears 2-year high: The cryptocurrency surpassed USD 45k for the first time in nearly 2 years. BTC has risen over 20% since the start of December. (Bloomberg)
- Argentina and the IMF are reportedly close to reaching an agreement — which could come as soon as this month — over the delayed seventh review of the country’s USD 44 bn loan program. An IMF delegation is set to arrive in Buenos Aires on Thursday to continue negotiations. (Reuters | Bloomberg)
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ADX |
9,588 |
+0.1% (YTD: +0.1%) |
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DFM |
4,091 |
+0.8% (YTD: +0.8%) |
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Nasdaq Dubai UAE20 |
3,842 |
+0.3% (YTD: +0.3%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.3% o/n |
5.1% 1 yr |
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TASI |
12,123 |
+0.7% (YTD: +1.3%) |
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EGX30 |
25,502 |
+2.4% (YTD: +2.4%) |
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S&P 500 |
4,743 |
-0.6% (YTD: -0.6%) |
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FTSE 100 |
7,722 |
-0.2% (YTD: -0.2%) |
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Euro Stoxx 50 |
4,513 |
-0.2% (YTD: -0.2%) |
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Brent crude |
USD 75.89 |
-1.5% |
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Natural gas (Nymex) |
USD 2.57 |
+2.4% |
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Gold |
USD 2,067.40 |
-0.2% |
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BTC |
USD 45,106.91 |
+3.3% (YTD: +6.3%) |
THE CLOSING BELL-
The DFM rose 0.8% yesterday on turnover of AED 349.05 mn. The index is up 0.8% YTD
In the green: Takaful Emarat (+14.8%), Dubai Islamic Ins. and Reinsurance (+10.6%) and Islamic Arab Ins. Company (+8.7%).
In the red: Ekttitab Holding Company (-2.3%), Aramex (-2.2%) and Union Coop (-1.6%).
The ADX rose 0.1% yesterday on turnover of AED 1.07 bn. The index is up 0.1% YTD.
