Major stock markets in the Gulf fell in early trade on Thursday tracking oil prices and Asian shares lower as fears over China’s sluggish economic recovery and concerns that the Federal Reserve may still raise interest rates rattled investors.
Minutes from the Fed’s July meeting showed officials were divided over the need for more interest rate hikes.
Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the UAE, have their currencies pegged to the US dollar and generally follow the Fed, exposing the region to a direct impact from any US monetary policy moves.
Saudi Arabia’s benchmark index eased 0.1%, weighed down by a 1.1% fall in Dr Sulaiman Al-Habib Medical Services and 0.4% drop in Al Rajhi Bank.
The kingdom’s crude oil exports fell for a third straight month in June to their lowest since September 2021, data from the Joint Organizations Data Initiative (JODI) showed on Wednesday, with big Asian buyers favouring cheaper Russian oil.
In Abu Dhabi, the index eased 0.1%.
Oil prices - a key catalyst for the Gulf’s financial markets - were choppy after falling over the past three sessions, with the undertone grim on worries that slowing growth in China and possible further US interest rate hikes will weaken fuel demand in the world’s two biggest economies.
Dubai’s main share index fell 0.2%, with Al Ansari Financial Services losing 0.8%.
The Qatari index dropped 0.4%, hit by a 0.4% fall in petrochemical maker Industries Qatar.
The index is on course to post its third weekly loss.
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