Major Gulf bourses fall on Fed chair's hawkish tone
Most stock markets in the Gulf ended lower due to a slightly hawkish outlook from the US Federal Reserve, with Abu Dhabi, Qatar, and Saudi Arabia experiencing declines.
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Posted 8/28/2023, 1:15:00 PM
reuters.com
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Saudi Arabia's stock market ended higher due to an increase in oil prices, but gains were limited as investors awaited further interest rate insight from the U.S. Federal Reserve.
The Dow closed lower due to pressure from regional banks and disappointing quarterly results from retailers Macy's and Dick's Sporting Goods.
Stock markets worldwide experience declines amid concerns over the Chinese property market, rising US bond yields, and poor economic data in China and the UK.
The Dow and S&P 500 ended slightly lower due to concerns about the Federal Reserve keeping interest rates higher for longer, while the Nasdaq finished barely in the green; the financial sector fell 0.9%, dragged down by an S&P downgrade of credit ratings of regional U.S. lenders, and investors are awaiting clarity on the rate outlook from Fed Chair Jerome Powell.
Most Gulf stock markets ended higher ahead of the Jackson Hole summit, as soft manufacturing surveys sparked hopes of a pause in policy tightening by central banks, although uncertainty in energy markets remained.
The stock market experienced a sharp decline as early gains turned into a selloff, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all falling; concerns over rising bond yields and inflation contributed to the sell-off.
The U.S. stock market closed lower as an earlier rally driven by Nvidia's earnings report fizzled out, while treasury yields increased, and the S&P 500 is on track to end its five-month winning streak, with concerns over the Federal Reserve Chair Jerome Powell's speech at Jackson Hole weighing on investors.
The Pakistani stock market closes lower due to concerns about the weak rupee and a bleak economic outlook, despite some support from MSCI raising Pakistan's weight in its Frontier Markets Index.
Gulf stock markets have a mixed performance as higher oil prices are offset by concerns over potential interest rate hikes by the US Federal Reserve.
Gulf stock markets ended mixed as China's measures to support its markets provided some relief, while energy market volatility weighed on sentiment.
Saudi Arabia experienced a sharp decline in its foreign reserves, with a drop of over $16 billion last month, marking the largest decrease since the negative oil prices during the pandemic as the country invested in US stocks using its savings.
U.S. crude oil stocks have reached their lowest level this year and are expected to decrease further, leading to a tight crude oil market and a potential increase in global oil prices.
Most stock markets in the Gulf ended lower due to a contraction in factory activity in China, dampening investor sentiment.
Wall Street stocks opened lower as traders grappled with concerns over China's struggling economy and climbing Treasury yields, with the S&P 500 and Dow Jones slightly down and the Nasdaq Composite slipping, while the focus remains on the Federal Reserve and seasonal market forces.
Stocks were lower on Tuesday as September began, with oil prices reaching new highs and Treasury yields rising, putting pressure on the market, while traders awaited more economic data to determine the likelihood of another rate hike from the Federal Reserve.
Stock index futures were slightly lower on Wednesday due to concerns about oil prices at a 10-month high, with S&P futures and Dow futures down 0.2% each and Nasdaq 100 futures down 0.3%.
Global equity markets closed mostly lower, with the exception of India and South Korea, as concerns about inflation and uncertainty around Fed rate actions weighed on investor sentiment. The Japanese Nikkei closed 1.16% lower due to lower-than-expected GDP growth and China's ban on iPhones. Officials at the Hong Kong Exchange halted trading after major flooding from storms. European markets were also lower, and US equity futures indicate a lower open.
U.S. equity markets experienced a downturn this week due to concerns about inflation, Federal Reserve statements, and trade tensions, with real estate equities and other yield-sensitive sectors particularly affected by rising interest rates, although hotel REITs rebounded due to improved forecasts for major hurricanes.
Most stock markets in the Gulf rose in response to a rise in oil prices, except for the Saudi index which closed lower; however, the International Monetary Fund predicts a further slowdown in Saudi Arabia's GDP growth due to the extension of oil production cuts.
Global markets ended higher as energy stocks climbed supported by Saudi Arabia and Russia's decision to extend supply cuts, while Wall Street's key indexes saw weekly declines due to investor concerns over interest rates and anticipation of upcoming U.S. inflation data. In Asian markets, Japan's Nikkei 225 ended down, Australia's S&P/ASX 200 was up, and Chinese shares rose following improved data on consumer price inflation. The Eurozone's economic growth outlook has been downgraded by the European Commission, and crude oil prices fell.
Wall Street stocks closed lower as Apple's fall event began and investors awaited key inflation data, with the Nasdaq Composite dropping over 1% and the S&P 500 decreasing by approximately 0.6%.
Asian stock markets fell as Wall Street experienced a decline, with investors preparing for key US inflation data, and a spike in oil prices added to concerns about persistent price pressures and the interest rate outlook.
Stocks declined amid speculation that US inflation data will show persistent price pressures, increasing the likelihood that interest rates will remain elevated; market focus is on the US consumer price report.
The Philippine stock market continues to decline, with concerns about a hawkish central bank deterring foreign investors and wiping out billions of dollars in market value.
Stock indices closed lower today, with the Nasdaq 100, S&P 500, and Dow Jones Industrial Average all experiencing declines, while the technology sector was the session's laggard and the real estate sector was the leader but still lost ground. Additionally, the U.S. 10-Year Treasury yield and Two-Year Treasury yield both increased.
The S&P 500 and Nasdaq ended the week slightly lower due to a decline on Friday caused by higher bond yields and oil prices, while the Dow Jones Industrial Average saw a small weekly gain.
Most stock markets in the Gulf ended lower on Sunday due to profit-taking, except for the Egyptian index which reached a record high. Saudi Arabia's benchmark index dropped, highlighting the risk of economic contraction for the kingdom, while Egypt's blue-chip index gained, led by Beltone Financial Holding. UAE's Global Investment Holding also agreed to buy a stake in Egypt's main tobacco products maker.
Asia-Pacific equity markets closed lower, with the exception of China's Shanghai Composite, as investors eagerly await central bank meetings and keep an eye on the ongoing management of global oil supply. Meanwhile, U.S. equity futures indicate a positive open.
Asian stock markets mostly declined, with Japan's Nikkei 225 leading losses, as investors were concerned about upcoming central bank decisions and the possibility of the Bank of Japan ending its negative interest-rate policy.
U.S. stocks were lower on Tuesday as oil prices and bond yields rose ahead of the Federal Reserve's interest rate decision, with investors watching for guidance on future rate hikes and inflation threats.
Asia-Pacific markets are expected to continue declining as investors wait for China's loan prime rates and the U.S. Federal Reserve's rate decision, while oil prices rise due to supply concerns and all 11 sectors in the S&P 500 trade down.
Stocks closed lower on Tuesday due to uncertainty surrounding the Federal Reserve's future policy plans, as rising oil prices and concerns about inflation and interest rates weighed on investor sentiment. The Fed's decision on interest rates is expected to remain unchanged, but there is uncertainty about their next steps.
U.S. stock markets closed lower amid risk-off sentiment as the Federal Reserve began its two-day monetary policy meeting, while Asian markets, including Japan's Nikkei 225 and Australia's S&P/ASX 200, experienced declines; however, European markets, including Germany's DAX and the U.K.'s FTSE 100, traded higher.
The U.S. stock markets closed in the red as the Federal Reserve kept the federal funds rate unchanged, leading to losses in sectors such as communication services and information technology, while Asian stocks fell due to concerns over higher U.S. interest rates.