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Monday, 02 August 2021

US Federal Reserves likely to cut interest rates in upcoming meeting: Egypt's central bank

Positive news on coronavirus vaccines and the fading of uncertainty regarding the US elections helped global markets performance in late November

Doaa A.Moneim , Wednesday 2 Dec 2020
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US Federal Reserve is expected to cut the interest rates in its upcoming meeting that will be held in December, which is its last meeting in 2020, in light of the US treasury bonds market performance and the downturn of proceeds curve, the Central Bank of Egypt (CBE) projected in its weekly briefing on the global markets.
 
The CBE said that the news reported about the new vaccines against the virus updates and the beginning of power transferring to the US elected president Joe Biden have dominated the global markets performance in November.
 
On emerging markets performance, stock markets are close to achieve its best monthly performance since March 2016, recording profits for the fourth executive week with the improvement in risk taking, the CBE said.
 
It added that MSCI EM index , Morgan Stanley index for emerging markets, rose by 1.7 percent, and the same index for Latin America (MSCI Latam) went up by 3.52 percent , in addition the same index for Asia except Japan ( MSCI Asia ex. Japan) also inched up by 1.49 percent.
 
Moreover, emerging markets’ currencies saw increases as well from 20 November through 27 November on the back of the decrease in US dollar prices and the positive news regarding the vaccines against Corona, according to the the CBE.
 
Global oil prices witnessed an increase by 7.16 percent in November ahead of the OPEC+ meeting that is anticipated to be held next week, which is expected to delay the oil production increase plan that was targeted in 2021, said the CBE.
 
OPEC+ planned to increase its production with two million barrels per day (bpd) in January, which represents about 2 percent of the global oil consumption, after the significant decline in its production in 2020 on the wake of the oil price war crisis and the global lockdown procedures that the countries adopted to curb the spread of the COVID-19 virus.
 
In this regard, AstraZeneca announced vaccine’ positive news and other vaccines updates have boosted the global oil market, while the US crude oil stock is unexpected to decrease next week, according to the CBE.
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