Egyptian stocks react positively to coup

!--googleoff: snippet-->


Egyptian stocks have reacted very well to the news that President Morsi was deposed last night, with the EGX30 - the country's main index - jumping up 6.4 per cent at the open, the largest rise since June 2012.

Despite this boost, market strategist Ishaq Siddiqi says that the investment case for Egypt is weak.

Meanwhile, the head of Egypt's constitutional court Adly Mansour has just been sworn in as temporary head of state. He promised to hold "early parliamentary and presidential elections" conducted "according to the will of the people".

The United States is watching the situation closely, with president Barack Obama said he was "deeply concerned", urging Egypt's armed forces to hand control back to a democratically elected civilian government as soon as possible. Around 550 US marines are standing by at Naval Air Station Sigonella in Sicily and MorĂ³n Air Base in southern Spain.

Under US law, foreign aid must be suspended to a country whose elected leader is deposed through a coup, although Obama has not yet called the actions taken last night a coup. Egypt currently receives around $1.5bn per year in aid from the US.