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- Asian shares rebound
- Saudi stocks add 4.1 percent on Monday
- Oil prices rise on tightening supply
- Dollar weakens, gold prices trade higher
Global markets
Asian shares regained some ground in early trading on Tuesday after a sharp drop in the previous sessions due to concerns about trade tensions between the United States and China.
MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.25 percent, edging away from a 19-month low touched on Thursday last week.
Overnight on Wall Street, shares dropped as a retreat in technology stocks weighed on the market. The Dow has lost 4.5 percent this month, pulling away from record peaks, as long-term Treasury yields soared to their highest level since 2011.
“The focus of the markets has turned to the Middle East due to the Saudi incident. And with U.S. stocks still struggling, other equity markets will have a difficult time bouncing convincingly,” Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo, told Reuters.
“The United States has been the epicentre of the recent market tumult, with Wall Street shares being hit by higher Treasury yields. U.S. shares will have to find their feet first.”
Middle East markets
The Saudi market rebounded sharply on Monday after a steep drop in the previous session.
The Saudi market recovered 4.1 percent after dropping 7.2 percent in the two previous sessions.
Saudi-based analyst Khaled Feda told Reuters that the market had overreacted to the Khashoggi case on Sunday, creating attractive opportunities to purchase blue chips. Foreign investors were keen buyers on Monday, he said.
Saudi Basic Industries, rose 3.7 percent on Monday while Sahara Petrochemical added 6.9 percent.
Dubai’s index edged down 0.03 percent as real estate and industrial shares reversed early gains to trade lower. Neighbouring Abu Dhabi’s index rose 0.04 percent.
Egypt’s index dropped 0.1 percent but Madinet Nasr for Housing and Development jumped 7.7 percent, continuing a surge that began on Sunday when Sixth of October Development and Investment (SODIC) said it aimed to take over Madinet by exchanging one of its shares for two Madinet shares.
Qatar’s index edged up 0.1 percent as Industries Qatar rose 2.7 percent.
Kuwait’s index rose 0.9 percent, Bahrain’s index edged up 0.01 percent while Oman’s index lost 0.8 percent.
Oil prices
Oil prices rose in early trading on Tuesday on tightening supply, as market participants took into considerations the United States sanctions on Iran that will start from November 4.
International benchmark Brent crude for December delivery rose 27 cents, or 0.33 percent, to $81.05 per barrel by 0325 GMT.
U.S. West Texas Intermediate crude for November delivery was up 12 cents at $71.90 a barrel.
“Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers,” Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul, told Reuters.
“Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel,” Hwang added.
Currencies
The dollar retreated early on Tuesday.
Against a basket of six major currencies, the dollar index dropped to 95.06, off an intraday high of 95.37 on Monday.
Precious metals
Gold prices edged up on Tuesday to trade near July highs.
Spot gold was up 0.1 percent at $1,227.76 an ounce at 0114 GMT. On Monday, it touched a peak of $1,233.26, the highest since July 26.
U.S. gold futures were up 0.1 percent at $1,231.20 an ounce.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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