RFA Breakfast Paper - July 2, 2026
Egypt's M2 Money Supply Reaches New Record High
Money supply (M2) in Egypt increased to a record EGP 15.33 trillion in May 2026, up from EGP 15.14 trillion in April, reflecting continued expansion in liquidity across the economy. The latest reading underscores sustained growth in deposits and credit within the banking system, providing support for economic activity despite elevated interest rates and persistent inflationary pressures. However, the continued increase in money supply could also contribute to underlying inflation if liquidity growth continues to outpace economic output. Historically, Egypt's M2 has averaged EGP 2.41 trillion since 1996, making the latest figure of EGP 15.33 trillion the highest on record, compared with a record low of EGP 161.1 billion in February 1996.
U.S. Stocks Finish Mixed as Weak Jobs Data Fuels Defensive Rotation
U.S. equities closed mixed on Thursday after the June employment report showed the labor market slowed more than expected, reinforcing investor caution. Nonfarm payrolls increased by 57,000, well below expectations of more than 100,000, although the unemployment rate edged lower to 4.2%. Growth-oriented sectors, including technology and communication services, came under pressure, dragging the Nasdaq lower by 0.8%. In contrast, the Dow Jones Industrial Average advanced more than 1%, supported by gains in Apple and Microsoft. Investors also rotated into defensive sectors, with utilities, health care, and consumer staples each posting gains of more than 2%, highlighting a more risk-averse tone in the market. The softer payrolls data reinforced expectations of a gradual cooling in the labor market without signaling a sharp deterioration in economic activity. In the bond market, short-term Treasury yields moved modestly lower following the weaker-than-expected jobs report, while the 10-year Treasury yield was little changed, suggesting investors remain cautious about the outlook for interest rates. Overall, the session reflected a shift toward defensive positioning as markets balanced signs of slowing employment growth against continued resilience in broader economic conditions.
NGX Extends Losses as Persistent Selling Pressure Keeps Investors Cautious
The Nigerian equity market remained under pressure, closing lower for another session as sustained selling in mid-cap and blue-chip stocks continued to weigh on investor sentiment. The broad-based decline reflected persistent profit-taking across major market sectors, with the Insurance and Banking sectors leading the losses after shedding 2.46% and 2.15%, respectively. Consequently, the NGX All-Share Index (ASI) fell by 1,368.10 basis points, or 0.61%, to close at 224,321.97, while market capitalization declined by ₦877.91 billion to ₦143.95 trillion. The continued weakness suggests investors remained cautious, with notable declines in several large-cap stocks reinforcing the market's bearish tone. Despite the weaker market performance, trading activity improved significantly as investors increased participation during the session. Total trading volume rose by 75.24% to 855.40 million shares, while the value of transactions surged by 103.59% to ₦28.42 billion across 51,609 deals. The sharp increase in activity indicates that selling pressure remained elevated, although the higher turnover also points to active repositioning by investors. Going forward, market direction is likely to depend on whether bargain hunting emerges to offset the current wave of profit-taking and restore buying momentum.
