After the military ousting of President Mohamed Mursi, Egyptian share soared 6% and debt insurance costs plummeted. For most other emerging assets, they stayed subdued due to the seen strength of the dollad and due to higher US yields.
Several Muslim Brotherhood leaders, along with Mursi were held at different location due to security purposes due to the nations call for the president to resign. The people of Egypt greeted Mursi's overthrow with celebration despite the seen economic crisis.
Dina Ahmad, strategist for BDP Paribas said, "While essentially this takes Egypt back to square one and delays any chance of economic progress and an IMF deal even further, we think that ultimately it creates a window of opportunity for a more stable government to be put in place."
Ahmad added, "There are therefore important implications for the stability of the pound as well as government finances going forward, particularly given that the Egyptian economy is already on the verge of meltdown"
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