[ad_1]
Stock markets in the Gulf had a mixed performance on Wednesday after data revealed that China experienced deflation in July. This is seen as a negative sign for the outlook of global economic growth.
In China, consumer prices fell by 0.3% in July compared to the same period last year, marking the first decline since February 2021. However, this was slightly better than the forecasted drop of 0.4%. Producer prices also fell for the tenth consecutive month.
Dubai’s main share index experienced a slight decline of 0.2%, primarily due to a 0.6% fall in the value of blue-chip developer Emaar Properties. Traders in the Dubai stock market are closely monitoring economic developments in China, but the market still maintains strength due to favorable business conditions.
Saudi Arabia’s benchmark index, on the other hand, reversed early losses and closed 0.4% higher. Al Rajhi Bank saw a significant rise of 1.4% in its value.
Oil prices, which significantly impact the Gulf economy, reached new highs with Brent crude hitting its highest level since April. Tighter supply resulting from output cuts by Saudi Arabia and Russia offset concerns over sluggish demand from China and a report showing increasing U.S. crude inventories.
In Abu Dhabi, the index dropped 0.4%, while the Qatari benchmark saw a 0.3% increase. Industries Qatar, a petrochemical maker, advanced by 1.1% despite reporting a decline in first-half earnings. The Qatari stock market rebounded to some extent after experiencing price corrections, although there is still a possibility of further losses in the short term.
Outside the Gulf region, Egypt’s blue-chip index edged 0.1% higher. Egypt is expected to experience further increase in headline inflation in July, following a record high in June.
Overall, the Gulf region’s stock markets were affected by China’s deflation and volatile global conditions, but they still showed resilience based on local economic factors.
[ad_2]
Source link