Egyptian President Takes Oath Stocks Surge

Former military leader Abdel Fattah el-Sisi took the oath of president Sunday and was greeted by a stock market rally of 4.7%.
This move to military rule is seen as a path to stability and predictability that investors are craving for — the EGX-30 is up over 75% in the past 12 months and a whopping 137% since the low point at the end of 2011.
But make no doubt about it, the country’s former military chief has a steep hill to climb to get Egypt’s economy back on track. Unemployment, the budget deficit and inflation are currently running between 11-13%, making it difficult for el-Sisi to maneuver.

The president and his new cabinet will need to push forward with structural and tax reforms to attract foreign direct investment. He has hired external consultants to advise on jump-starting growth, which closed out the 4th quarter of 2013 with a meager expansion of just under 1.5%.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza