The Standard & Poor’s index managed to achieve slight gains, Thursday, and closed up 0.31% to 3,967.23 points, ending a series of losses that extended four sessions thanks to a late rise in the session as investors awaited a major report on the labor market, Friday.
While the Nasdaq index fell 0.26% at the close on Thursday, the Dow Jones index rose 145.92 points, or 0.46%, to 31656.35 points.
Data showed that weekly US jobless claims fell more than expected to a two-month low last week, and layoffs fell in August, suggesting the Federal Reserve will need to keep raising interest rates sharply to slow the labor market.
Investors are now waiting for the monthly non-farm payrolls report on Friday to get more indications regarding the labor market.
Unemployment claims
The number of Americans filing new claims for unemployment benefits fell to a two-month low last week, and layoffs fell in August, suggesting the Federal Reserve will need to keep raising interest rates sharply to slow the labor market.
The Federal Reserve is raising interest rates significantly to tame inflation by curbing demand in all sectors of the economy.
The Labor Department said Thursday that first-time applications for state unemployment benefits fell by 5,000 to a seasonally adjusted number of 232,000 in the week ending August 27.
A survey conducted by the Institute for Supply Management on Thursday confirmed strong demand for workers and revealed a sharp recovery in employment in the manufacturing sector in August following three months of contraction.
The survey showed that “companies continued to hire at strong rates in August, with little evidence of layoffs, hiring freezes, or staff reductions through attrition.”
The data for the previous week was revised to show a decrease of 5,000 orders from what was previously announced. Economists polled by Archyde.com had expected 248,000 orders in the last week.
Despite the large increases in interest rates approved by the Federal Reserve to curb inflation, which raised the risk of a recession, there are no signs yet of widespread layoffs.
Demands remain below the 270-300K range that economists say indicates an actual slowdown in the labor market.
The government said this week that 11.2 million jobs were created at the end of July, with two jobs for every unemployed person. The flexibility of the labor market continues to dispel fears that the economy is in recession following the GDP contraction in the first half of the year.
The survey confirmed the evidence that the economy is expanding. The manufacturing PMI remained stable at 52.8 points last month. A reading above the 50 threshold indicates an expansion in the manufacturing industries, which represent 11.9 percent of the US economy.
Five of the six largest manufacturing sectors, including machinery and transportation equipment, computer and electronic products, posted moderate to strong growth.
Economists still expect job growth to slow, especially as worker productivity continues to decline at unsustainable rates, putting further pressure on labor costs.
(Archyde.com)
Tag:
interest rates
Because of the interest rate hike, gold records the longest losing streak in 4 years
written by Alexandra Hartman Editor-in-Chief
Gold prices fell today, Wednesday, recording the longest series of monthly losses since 2018, as they came under pressure from large interest rate increases from major central banks around the world.
Spot gold fell 0.66% to $1,711.70 an ounce by 18:50 GMT, heading towards ending August with a loss of regarding 3% in the fifth consecutive month of declines.
US gold futures fell 0.6% to settle at $1,726.20 an ounce.
Edward Moya, chief analyst at OANDA, said it has become increasingly clear that central banks are going to go fast in tightening monetary policy due to unprecedented inflationary pressures, which is not good for gold.
Federal Reserve official Loretta Mester said the US central bank would need to raise interest rates above 4% by early next year.
On the other hand, inflation in the Eurozone has jumped to another record high and will soon be in the double digits, signaling a series of big rate hikes.
Gold is known as a safe investment in times of economic and geopolitical crises, but the high interest rate environment makes the non-yielding yellow metal less attractive to investors.
Among other precious metals, spot silver fell 2.60% to $18.01 an ounce, taking its losses over the month to 11% and recording the biggest monthly drop since September 2020.
Platinum fell 0.58% to $842.60, while palladium fell 0.7% to $2072.50.
Details of interest rates on certificates after the Central Bank’s meeting with
written by Alexandra Hartman Editor-in-Chief
I wrote – Manal Al-Masry:
Banks continue to offer savings certificates at the same interest rates without change following the Central Bank fixed interest yesterday, Thursday, in the first meeting of the Monetary Policy Committee following the appointment of the new acting central bank governor.
The Monetary Policy Committee of the Central Bank of Egypt decided in its meeting on Thursday to keep deposit and lending interest rates unchanged for the second time in a row.
Yesterday, Thursday, President Abdel Fattah El-Sisi issued a republican decision appointing Hassan Abdullah as acting central bank governor, a day following Tarek Amer resigned from the position of central bank governor.
Masrawy offers the interest rate on certificates with a maturity of 3 years, the return of which is at the top of the return of the rest of the savings vessels in banks, following the Central Bank’s decision yesterday to fix the interest.
Nasser Social Bank
Triple Certificate: The interest rate is 15%, the return is paid annually, or 14.25% is paid quarterly, or 14% is paid monthly, and its purchase starts from the first thousand pounds as a minimum.
Triple Certificate (Give Back) for the elderly only: at a return rate of 15.25%, the return is paid annually, or 14.5% is paid on a quarterly basis, or 14.25% is paid monthly, and its purchase starts from the first thousand pounds as a minimum.
National Bank of Egypt
The platinum certificate is for a period of 3 years for a fixed return: the interest rate is 14% annually, and the return is paid monthly, and its purchase starts from the first thousand pounds as a minimum.
Egypt Bank
The Summit Certificate is for a period of 3 years for a fixed return: the interest rate is 14% annually, the return is paid monthly, and its purchase starts from the first thousand pounds as a minimum.
Al Baraka Bank of Egypt
A savings certificate with a variable return for a period of 3 years: a variable return according to the results of the business, and the return should not be less than 14% annually with a monthly exchange period, and it is purchased from the first thousand pounds.
Arab African International Bank
Triple Certificate Emerald: The interest rate ranges between 13.75% annually and the return is paid monthly, 14% is paid quarterly, 14.125% is paid semi-annually, and 14.25% is paid annually, and its purchase starts from the first 5,000 pounds as a minimum.
Housing & Development Bank:
3-year certificate: with interest ranging between 13.5% annually for the monthly return period, and 13.75% annually for the quarterly return period, and its purchase starts from the first thousand pounds as a minimum.
Royal Certificate: The Development Bank sells this certificate at an interest rate of 14.25%, to be paid annually, provided that the minimum purchase amount is not less than one million pounds.
Al Ahli Bank of Kuwait
3-year certificate: with an interest rate of 13.5% annually, with a monthly periodicity to pay the return, and its purchase starts from the first thousand pounds as a minimum.
Triple certificate, which can be purchased from one million pounds: the interest rate is 14%, and it is paid monthly.
Egyptian Export Development Bank
He sells a triple saving certificate with an interest of 14% annually, paid annually, and starts buying it from the first thousand pounds as a minimum.
Commercial International Bank CIB
Triple Certificate: It offers an interest of 13.5% annually and the return is paid monthly with a fixed return, provided that the minimum purchase of the certificate is not less than 100,000 pounds.
4-year certificate: offers an interest rate of 14% annually, provided that the minimum purchase of the certificate is not less than 100,000 pounds.
Attijariwafa Bank of Egypt
Triple Certificate of Fixed Return: The interest rate following the increase ranged 13.5% for the monthly return, 13.7% annually for the quarterly return, 13.8% annually for the annual return, and 14% at the end of the three years.
And start buying it from the first 20 thousand pounds as a minimum.
SAIB Bank
The triple certificate (the saver): sells a certificate with an interest rate of 13.5% annually, and the return is paid monthly, and it is purchased from the first 5 thousand pounds.
Triple Certificate (Excellent): The return is recorded at 14% annually for the monthly return periodicity, but its purchase starts from the first million pounds as a minimum.
Abu Dhabi Commercial Bank Egypt
My Triple Money Certificate: The interest rate ranges between 13.5% per month, 13.6%, quarterly, and 13.75%, semi-annual, and it starts from the first 5,000 pounds.
Triple Certificate (Excellence): The interest rate is 14% annually, and the return is paid monthly, provided that the minimum purchase amount is not less than 250 thousand pounds.
QNB Al Ahli Bank
3-year certificate: with interest ranging between 13.5% annually for the monthly interest-disbursement periodic, and 13.75% annually for the quarterly return-disbursement periodic, and its purchase starts from the first thousand pounds as a minimum.
HSBC Bank
3-year certificate: with an interest of 13% annually, with a monthly periodicity to pay the return, and its purchase starts from the first 5,000 pounds as a minimum.
Mashreq Bank
Triple Certificate: The interest rate is 13.5% annually and the return is paid monthly.
Cairo Bank
Primo Extra Certificate: The interest rate ranges between 13.25% annually, monthly return, and 13.5% annually, quarterly return, and its purchase starts from the first 5,000 pounds as a minimum.
Egyptian Gulf Bank
It offers a triple (Premium) certificate for a fixed return: the interest rate is 13.5% annually and the return is paid monthly, and its purchase starts from the first 50,000 pounds as a minimum.
National bank of Kuwait
Triple Certificate of Fixed Return: The interest rate is 13.5% annually, and the return is paid monthly, provided that the purchase limits are not less than half a million pounds.
Arab Bank:
Triple Certificate of Fixed Return: The interest rate is 13% annually, the return is paid daily, and its purchase starts from the first 10,000 pounds as a minimum.
Bank of Alexandria
Triple savings certificate: the interest rate ranges from 12.5% annually, the return is paid monthly, and 12.75% is paid quarterly, and its purchase starts from the first thousand pounds.
Arab International Bank
Triple Certificate of Fixed Return: The interest rate ranges between 12%, the return is paid monthly, 12.25% is paid quarterly, 12.5% is paid semi-annually, and 12.75% is paid annually, and its purchase starts from the first 5,000 pounds as a minimum.
Med Bank:
It presents a triple certificate: the interest rate is 11.25% annually, the return is paid in advance monthly, and the interest has not been raised yet, and its purchase starts from the first thousand pounds.
First Abu Dhabi Bank
He sells a triple certificate: the interest rate ranges between 10% annually for the monthly return periodicity, 10.25 % annually for the quarterly return periodicity, and 10.4% for the annual return periodicity, and the bank did not move the interest on it like other banks.
Emirates NBD Bank:
Triple Certificate of Fixed Return: The interest rate is 10% annually, and the return will be paid monthly, and the interest has not been raised on it like other competing banks.
real estate Bank
Triple Certificate of Fixed Return: The interest rate ranges between 11% annually, the return is paid monthly, and 11.25% annually, the return is paid quarterly.
Egyptian Agricultural Bank:
Triple Certificate of Fixed Return: The interest rate is 11% annually, and the return is paid monthly.
Arab Investment Bank:
Triple Certificate: The interest rate is 11% annually, the return is paid monthly, and its purchase starts from the first 10,000 pounds as a minimum.
The central bank fixes the interest rate at the first meeting of the charge d’affaires
written by Alexandra Hartman Editor-in-Chief
05:31 PM
Thursday August 18 2022
I wrote – Manal Al-Masry:
The Monetary Policy Committee of the Central Bank of Egypt decided in its meeting today, Thursday, to keep deposit and lending interest rates unchanged for the second time in a row.
This comes in the first meeting of the committee following Hassan Abdullah, the new Acting Governor of the Central Bank, assumed his duties today, Thursday.
The interest rates following stabilization reached 11.25% on deposits and 12.25% on lending.
The Monetary Policy Committee decided, in its last meeting on June 23, to fix interest rates without change, following the Central Bank raised interest rates by a total of 3% during the committee’s meetings in March and May.
Today, Thursday, President Abdel Fattah El-Sisi issued a republican decision appointing Hassan Abdullah as acting governor of the Central Bank.
This comes following Tarek Amer submitted his resignation yesterday, Wednesday, from the position of Central Bank Governor, which was accepted by President Abdel Fattah El-Sisi, and issued a decision appointing Amer, an advisor to the President of the Republic.