The GCC witnessed another mixed week of market movements, according to investor relations consulting firm Iridium Advisors.
Kuwait (+1.7 percent) ended its four weeks of losing streak. Saudi Arabia (+0.6 percent) also edged higher after declining in the past two weeks, likely supported by higher oil prices. Bahrain (-0.0 percent) closed flat. Abu Dhabi (-1.9 percent) settled at its lowest level in 15 months.
Oman (-2.2 percent) mostly reversed its prior two weeks of gains. Qatar (-3.1 percent) was primarily hit by the weakness in its banks. Dubai (-5.4 percent) registered its biggest weekly fall since May last year after the index reached a four-month low on Friday. The U.S. markets closed in the red, with the Nasdaq Composite (-3.2 percent) being the top loser, followed by S&P 500 (-2.4 percent), and Dow Jones (-1.6 percent). Comments from the U.S. Fed chief that more monetary tightening might be required as inflation is “still too high” spooked markets, while the ongoing Middle East conflict also hurt. European markets met with a similar fate, whereby the STOXX600 (-3.4 percent) fell the most, followed by the CAC40 (-2.7 percent), while the FTSE100 (-2.6 percent), and the DAX (-2.6 percent) registered identical declines.
Read more: GCC markets: strong sentiment index surge
Regional markets – Geopolitical tensions continue to weigh
Weakness in the regional markets could persist amid the ongoing Israel-Palestine conflict, as market participants fear that it might spread to the wider Middle East region. Financial results from companies, meanwhile, will also sway the markets. On the corporate agenda, this week, ADCB, ADIB, Ascana, BBK, CBD, CBI, Emirates NBD, ESG, Mashreq Bank, MARK NBF, QEWC, QIIB, Vodafone Qatar, among several others, will publish their 3Q 2023 results. Further, Arabian Shield’s shareholders will vote on a merger with Alinma Tokio while Leen Al Khair will seek shareholders’ approval for bonus shares issuance.
U.S. and EU interest rate to be in focus
With the U.S. keeping interest rates on hold at the next policy meeting, Wall Street will look to see how high growth will peak before the economy cools in 4Q. Expectations are for the advance reading of 3Q GDP to rise from 2.1 percent to 4.3 percent. Additionally, the ECB is expected to leave interest rates unchanged next week, as per the communication following its last meeting in September. In the U.K., the delayed unemployment data and flash PMI surveys will be in focus this week. There is still significant uncertainty around the U.K. from the sustainability of declining inflation – which Governor Bailey claimed will fall sharply in October – to high wages, weak retail sales, and the potential economic drag.
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