Gulf shares ride high on upbeat oil prices; FAB drags Abu Dhabi
Most major Gulf stock markets closed higher on Monday, as risk appetite picked up and investors hoped rising oil...
Most major stock markets in the Gulf dropped in early trade on Thursday as weak US consumer data sparked recession worries worldwide, although the Qatari index edged higher to snap a seven-day losing streak.
US retail sales fell in December by the most in a year, pulled down by lower purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.
The widespread signs of weakening demand and subsiding inflation are likely to encourage the US Federal Reserve to further scale back the pace of its rate hikes next month, but not pause its monetary policy tightening anytime soon as the labor market remains tight.
Most Gulf currencies are pegged to the dollar and Qatar, Saudi Arabia and the United Arab Emirates usually mirror any monetary policy change in the United States.
Saudi Arabia’s benchmark index dropped 0.3%, hit by a 1% fall in Retal Urban Development Co, while Saudi Kayan Petrochemical Company retreated 2.8% a day after it announced shutdown of some production units for periodic maintenance.
Oil futures - a key catalyst for the Gulf’s financial markets - fell by nearly $1, extending losses from the previous day, as a surprise jump in US crude stocks weighed on the market along with fears of a recession that were heightened by disappointing US retail sales and output data.
Most Gulf markets in red tracking Asian shares, oil lower
Dubai’s main share index eased 0.2%, hit by a 0.7% fall in Salik Company, operator of the emirate’s exclusive road toll system. In Abu Dhabi, the index declined 0.4%, weighed down by a 0.4% drop in conglomerate International Holding.
The Qatari index, however, bucked the trend to trade 0.9% higher, on course to end a seven-day losing streak.