PHOTO
- Asian shares drop on trade tensions
- Saudi Arabia’s index dropped 0.4 percent on Sunday
- Oil prices dropped in early trading
- Dollar weakens, gold steadies
Global markets
Asian shares dropped sharply in early trading on Monday as trade tensions between the United States and China weighed on investor sentiment.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell more than 1 percent.
Japan's Nikkei dropped 1.2 percent while South Korea's KOSPI index plunged 1.8 percent.
“We expect U.S.-China trade tensions to get worse before they get better,” Citi analysts said in a note, according to a Reuters report.
“Although trade growth has held steady, concerns are rising in business surveys,” they added.
“Equity markets do not seem to be fully incorporating the risks of an escalation of tensions yet, which could have an effect on investment, sentiment, inflation, and growth.”
Middle East markets
Saudi Arabia’s index dropped 0.4 percent on Sunday as Al Rajhi Bank and SABIC fell 0.7 and 0.5 percent respectively.
Data released on Sunday showed that in the week ended on November 1 foreign investors sold 89.2 million riyals ($23.8 million) of stocks on a net basis, a huge decrease when compared to a week earlier, when foreigners sold 2.34 billion riyals of Saudi stocks.
Dubai's main index lost 0.4 percent with major developer Emaar Properties dropping 1.3 percent and Dubai Islamic Bank falling 0.2 percent.
Abu Dhabi's main index closed flat as Etisalat fell 0.6 percent and developer Aldar Properties was down 2.8 percent. First Abu Dhabi Bank (FAB) was up 0.4 percent.
Qatar’s index added 0.5 percent with Industries Qatar jumping 1.4 percent, Qatar Islamic Bank adding 1.1 percent, and Qatar National Bank (QNB) rising 0.8 percent.
Egypt’s index dropped 0.2 percent, Kuwait and Bahrain’s indices edged up 0.1 percent, and Oman’s index was mainly flat.
Oil prices
Oil prices dropped on Monday as the United States Secretary of State Mike Pompeo announced last week that eight top importers will be temporarily allowed to keep buying Iranian oil, as the U.S. imposes sanctions today.
Front-month Brent crude futures were at $72.39 per barrel at 0142 GMT on Monday, down 44 cents, or 0.6 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down 53 cents, or 0.8 percent, at $62.61 a barrel.
Currencies
The dollar weakened in early trading on Monday.
The dollar index, which tracks the greenback against a basket of six major currencies, was down 0.1 percent.
Precious metals
Gold prices steadied on a weakening dollar.
Spot gold was steady at $1,232.86 per ounce, as of 0126 GMT.
U.S. gold futures was up 0.1 percent at $1,234.6 per ounce.
(Writing by Gerard Aoun; Editing by Mily Chakrabarty)
(gerard.aoun@thomsonreuters.com)
Our Standards: The Thomson Reuters Trust Principles
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2018
