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|10 February, 2019

Sunday outlook: Global markets mostly dropped on Friday

Global markets dropped on Friday on weak investor sentiment. Middle East markets closed lower on Thursday, with the Qatari stock market dropping 1.7 percent. More commentary on oil prices, currencies and precious metals.

A trader works at the trading floor of KBC bank in Brussels, Belgium August 25, 2015. Volatile global markets got some respite from the latest blood-letting on Tuesday as bargain hunters nudged up Asian and European stocks, though China, at the center of the rout, was smashed again. REUTERS/Yves Herman - RTX1PKZI

A trader works at the trading floor of KBC bank in Brussels, Belgium August 25, 2015. Volatile global markets got some respite from the latest blood-letting on Tuesday as bargain hunters nudged up Asian and European stocks, though China, at the center of the rout, was smashed again. REUTERS/Yves Herman - RTX1PKZI

Yves Herman - RTX1PKZI
  • MSCI’s gauge of stocks across the globe dropped 0.35 percent on Friday
  • Qatar’s index retreated the most on Thursday, as rest of region dropped
  • Oil prices rose on Friday but ended the week lower
  • Dollar, gold rose

Global markets

Most markets across the world dropped on Friday, as trade fears and worries about global economic growth weighed on sentiment.

MSCI’s gauge of stocks across the globe shed 0.35 percent on Friday, and dropped for the week following six consecutive weekly increases. The pan-European STOXX 600 index lost 0.56 percent.

On Wall Street, the Dow Jones Industrial Average fell 63.27 points, or 0.25 percent, to 25,106.26, the S&P 500 gained 1.83 points, or 0.07 percent, to 2,707.88 and the Nasdaq Composite added 9.85 points, or 0.14 percent, to 7,298.20.

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“The sentiment continues to be investor anxiety about U.S.-China trade relations, the slowing global growth, and I think this week what is starting to really creep into investors’ anxiety is around corporate earnings,” Michael Arone, chief investment strategist at State Street Global Advisors in Boston, told Reuters.

Middle East markets

Stock markets in the region dropped on Thursday, Qatar’s index was the worst performer.

The Qatari index dropped 1.7 percent as market heavyweight Industries Qatar dropped 1.9 percent and Middle East's largest lender Qatar National Bank was down 1.6 percent.

In Dubai, the index lost 0.6 percent, with all its real estate stocks dropping. Emaar Properties dropped 2.7 percent, while its unit Emaar Development lost 3.7 percent. Damac Properties was down 3.8 percent.

The Abu Dhabi index was also down 0.6 percent, led by a 10 percent slump in Waha Capital.

Saudi Arabia's index lost 0.2 percent, with Al Rajhi Bank dropping 0.4 percent and Savola Group shedding 2.7 percent.

Egypt's blue-chip index fell 0.1 percent as country's biggest lender Commercial International Bank dropped 0.5 percent following gains in the previous sessions.

Kuwait’s index was mainly flat, Oman’s index edged 0.2 percent lower and Bahrain’s index added 0.7 percent.

Oil prices

Oil prices rose on Friday but ended the week lower.

U.S. West Texas Intermediate crude futures strengthened 8 cents to settle at $52.72 a barrel but recorded a weekly slump of more than 4 percent, their steepest this year.

Brent crude futures gained 39 cents to settle at $62.02. On the week, Brent dipped more than 1 percent.

Currencies

The dollar rallied on Friday, posting gains for the week.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.13 percent on Friday.

Precious metals

Gold prices rose on Friday as investors dumped equities and turned to safe havens.

Spot gold was up 0.3 percent at $1,313.95 per ounce at 1854 GMT, having recovered from an over one-week low of $1,302.11 touched on Thursday.

U.S. gold futures settled up 0.3 percent at $1,318.50.

(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)

(gerard.aoun@refinitiv.com)


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