Business
Major Gulf markets ease on weak oil prices
Major Gulf markets ease on weak oil prices
About this update from Al Rajhi Bank
Major stock markets in the Gulf slipped in early trade on Wednesday, as easing oil prices weighed on sentiment, though losses were capped by growing expectations of a U.S. Federal Reserve rate cut in December.Crude prices, a catalyst for the Gulf's financial markets, fell after President Volodymyr Zelenskiy stated that Ukraine is prepared to move forward with the U.S.-backed peace plan, raising the prospect of an eventual lifting of Western sanctions on Russian energy exports and increasing global supply.Saudi Arabia's benchmark index TADAWUL:TASI dropped 0.9%, hit by a 1.8% fall in Al Rajhi Bank TADAWUL:1120.Elsewhere, shares of Umm Al Qura for Development and Construction Co TADAWUL:4325 plunged 8.4%, its biggest intraday fall since April - after Saudi Arabia's Public Investment Fund disclosed on Wednesday that it had generated 950 million riyals ($250 million) by selling a 3.3% stake in the company.Among other losers, oil behemoth Saudi Aramco TADAWUL:2222 was down 0.2%.Dubai's main share index DFM:DFMGI fell 0.3%, with toll operator Salik Co DFM:SALIK losing 1.4%.In Abu Dhabi, the index ADX:FADGI was down 0.3%. Data released Tuesday showed U.S. retail sales rose less than forecast in September, while the Producer Price Index climbed 2.7% year-on-year through September, matching the prior month-earlier gain.The figures followed a series of dovish comments from Federal Reserve officials in recent days.U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.The Qatari index QSE:GNRI was flat in a choppy trade.($1 = 3.7506 riyals)