Mideast Stocks: Global economy worries weigh on Gulf stocks

In Dubai, the index dropped 1.5% as most of its real estate and banking shares traded lower


Stock markets in the Gulf fell in early trading on Thursday, extending their losses amid falling oil prices and fears of global recession triggered by disappointing economic data out of China and Europe.

Brent crude was down 37 cents, or 0.6%, at $59.11 a barrel by 0300 GMT, after falling 3% in the last session. 

Gross domestic product (GDP) growth in the 19-country euro zone was 0.2% in the second quarter compared with the previous quarter, a slowdown from 0.4% percent growth in the first three months of the year. 

China's economy stumbled more than expected in July, with industrial output growth cooling to a more than 17-year low, as the intensifying U.S. trade war took a heavier toll on businesses and consumers.

In Dubai, the index dropped 1.5% as most of its real estate and banking shares traded lower. Dubai's largest listed developer Emaar Properties  fell 3% while Emirates NBD shed 0.9%.

DAMAC Properties decreased 3.4%. The firm reported a nearly 87% drop in second-quarter net profit on Wednesday, hurt by the emirate's slumping property market.

Qatar's index was down 1.4% at 9,529 points, decreasing further from previous session's closing when it hit lowest loss in nearly a year. Most of the companies traded in red territory with Qatar National Bank dragging the index most as it plunged 2.3% and Qatar Insurance dropped 4.3%.

In Abu Dhabi the index slipped 0.8% with First Abu Dhabi Bank sliding 0.8%, and Abu Dhabi Commercial Bank shedding 1.2%

Saudi Arabia and Oman will resume trading on Sunday after the Eid break.

(Reporting by Maqsood Alam in Bengaluru; Editing by Angus MacSwan) ((Maqsood.Alam@thomsonreuters.com;))

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