Following emerging markets, Egypt's main index EGX 30 slipped on Thursday, traders said. Arab and institutional selling pulled stocks down, they added. Developed and emerging equity markets diverged with the latter falling on worries China will take more measures to temper growth after reporting its fastest quarterly growth in two years, Reuters reported. The North African country's benchmark index EGX 30 fell by 0.35 per cent, ending the week's trading at 6,864.19 points. The EGX 70 index, which measures 70 of the country's small and mid caps, added 0.16 per cent to 736.8 points. Volume hit LE1.3 billion ($238 million), according to the Egyptian Exchange. Meanwhile, bourses in Europe and Japan, however, put in gains with many investors waiting for the next batch of US earnings reports, which include Goldman Sachs.The euro hit a five-month low against the dollar as worries over euro zone member Greece continued to grind. The dollar rose to a four and a half month high against a basket of currencies China's annual gross domestic product rose 10.7 per cent in the fourth quarter, while third quarter growth was revised up to 9.1 per cent. Growth for the year was 8.7 percent, surpassing Beijing's eight per cent target. Consumer inflation rose to 1.9 per cent in December on the year from 0.6 per cent the previous month. This left many analysts expecting more policy tightening from China and its impact on global recovery. "Since major economies in the world are still struggling over the timing of their exit strategies, speculation about China tightening would raise worries about the impact on the world economy short term," said Jun Kato, senior chief analyst at Shinkin Central Bank Research Institute. Emerging market stocks as measured by the Morgan Stanley Capital International (MSCI) were down around three-quarters of a per cent. But Japan's Nikkei closed up 1.2 per cent, partly on export prospects from a weaker yen. The pan European FTSEurofirst 300 was up 0.2 per cent, driven by banks and what analysts said was a belief that the market had sold off too much on Wednesday when it fell 1.5 per cent. As well as Goldman Sachs, investors were also eyeing Google earnings, although these will be released after European markets close. The euro hit a five-month low against the dollar before recovering, while the Australian dollar recouped losses after the higher-than-expected Chinese data. The euro was flat on the day at $1.4093, recouping some losses after hitting the low of $1.4067 on trading platform EBS. Analysts said the euro remained vulnerable on fiscal concerns of euro zone peripheral economies, particularly debt-laden Greece.
