Gulf markets slump due to geopolitical tensions and concerns about US interest rate cut By Reuters

adminApril 21, 2024

Posted by Ateeq Shariff

(Reuters) – Stock markets across most of the Gulf region fell on Sunday due to geopolitical disputes and uncertainty surrounding U.S. Federal Reserve policy.

Iran launched its first-ever direct attack on Israel on April 13, launching more than 300 missiles and drones. It was said that this was a retaliation for Israel’s attack on the embassy in Damascus on April 1.

Iran’s Supreme Leader Ali Khamenei thanked Iranian forces for attacking Israel, saying Iran demonstrated its strength regardless of how many targets were hit, Iran’s official news agency reported on Sunday.

Austin Goolsbee, president of the Federal Reserve Bank of Chicago, said Friday that progress toward lowering inflation has stalled this year, making him the first U.S. central bank leader to focus earlier on the need to cut interest rates.

Among individual Middle East markets, Saudi Arabia’s benchmark index rose 0.1%, led by a 2.6% rise in ACWA Power.

The International Monetary Fund (IMF) said Middle East economies will grow at a slower pace this year than previously expected as the war in Gaza, attacks on Red Sea shipping and falling oil production add to existing problems of high debt and borrowing costs.

In its October regional outlook, the IMF lowered its growth forecast for the Middle East and North Africa (MENA) region in 2024 from 3.4% to 2.7%.

Qatari benchmarks fell 0.4%, with petrochemicals company Industries Qatar down 1.6% and Qatar Islamic Bank down 1%.

Outside the Gulf, Egypt’s blue-chip index rose 1% after falling more than 4% in the previous session, led by a 1.4% rise in top lender Commercial International Bank.

Meanwhile, the Bank of Egypt’s net foreign assets (NFA) deficit fell to its lowest in more than two years in March, likely thanks to the massive sale of real estate development rights and currency reform, data posted on the CBE website showed. . .

Saudi Arabia rose 0.1% to 12,518th place.

Qatar fell 0.4% to 9,792.

Egypt rose 1% to 28,623.

Bahrain eased by 0.2% to 2017.