Business
Gulf markets subdued on weak oil prices
Gulf markets subdued on weak oil prices
About this update from Al Rajhi Bank
By Ateeq Shariff Most Gulf stock markets remained subdued on Tuesday, weighed down by lower oil prices, as investors awaited key U.S. economic data for clearer signals on the Federal Reserve’s interest rate trajectory. Oil prices held firm on Tuesday as traders weighed up risks from Ukrainian drone strikes on Russian energy sites and mounting U.S.-Venezuela tensions.Brent crude futures ICEEUR:BRN1! fell 18 cents, or 0.3%, to $62.99 a barrel by 1017 GMT.Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.Saudi Arabia's benchmark index TADAWUL:TASI eased 0.1%, falling for a third consecutive session, with Al Rajhi Bank TADAWUL:1120 falling 0.4%.In Qatar, the index QSE:GNRI reversed early losses to finish 0.5% higher, led by a 1.6% rise in Qatar Islamic Bank QSE:QIBK.Data released on Monday revealed that U.S. manufacturing contracted for the ninth consecutive month in November. Attention now turns to Wednesday’s ADP November private payrolls report and Friday’s postponed September PCE inflation reading, both seen as critical indicators for a potential Federal Reserve rate cut at its meeting next week.According to CME’s FedWatch Tool, markets are currently pricing in an 87% probability to a December rate reduction.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 eased 0.2%, with Telecom Egypt EGX:ETEL retreating 2.6%.Dubai and Abu Dhabi markets were closed for a public holiday.Saudi ArabiaTADAWUL:TASI eased 0.1% to 10,536QatarQSE:GNRI gained 0.5% to 10,674EgyptEGX:EGX30 dropped 0.4% to 40,515BahrainBAHRAIN:BHBX added 0.1% to 2,050Oman(.MSX30) gained 1.1% to 5,773Kuwait(.BKP) fell 0.1% to 9,371