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- Global markets dropped on concerns over a slowing economy
- Egypt’s EGX30 gained 1.7 percent as COMI surged on Monday
- Oil prices dropped on reports of a climb in U.S. inventories
- Dollar under pressure, gold steadies
Global markets
Asian shares dropped in early trading on Tuesday, following a slide on Wall Street overnight on concerns about a slowing global economy and trade tensions between the United States and China.
China’s November retail sales grew at their weakest pace since 2003 and industrial output rose the least in nearly three years.
Investors are now looking to a major speech by President Xi Jinping today to mark the 40th anniversary of China’s reform and liberalisation.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 0.3 percent in mid-morning trade while Japan’s Nikkei tumbled 1.2 percent by the midday break.
Overnight on Wall Street, the S&P 500 lost 2.08 percent and the Nasdaq Composite dropped 2.27 percent.
“U.S. retailers have been stocking up consumer goods from China before hikes in tariff, piling up inventories. From now their costs are seen rising next year. That may have been kind of known to everyone but it’s becoming reality,” Tatsushi Maeno, senior strategist at Okasan Asset Management, told Reuters.
Middle East markets
A surge in petrochemical shares boosted Saudi Arabia’s index to finish 0.8 percent higher on Monday, as Saudi Basic Industries added 2.3 percent.
The largest lender, National Commercial Bank, gained 2.0 percent and Saudi Telecom climbed 3.2 percent.
In Dubai, the index inched up 0.3 percent after sliding 1.6 percent in the last session, with DAMAC Properties gaining 4.8 percent and blue-chip Emaar Properties adding 2.4 percent.
The Abu Dhabi index rose 0.7 percent with First Abu Dhabi Bank, the United Arab Emirates' largest lender, gaining 1.2 percent and energy firm Dana Gas climbing 2.3 percent.
Qatar's index was mainly flat with the Middle East's largest lender, Qatar National Bank, rising 1.0 percent. Recently listed Qatar Aluminium lost 4.7 percent to 12.40 Qatari riyals ($3.40), a day after rising 29 percent on its debut.
Egypt’s blue-chip index EGX30 gained 1.7 percent, outperforming the region as Commercial International Bank (COMI), increased 3.5 percent.
Kuwait and Bahrain’s indices were mainly flat, while Oman’s index edged 0.2 percent lower.
Oil prices
Oil prices fell early on Tuesday on reports of a big climb in U.S. inventories.
Traders told Reuters that inventories at the U.S. storage hub of Cushing, Oklahoma, rose by more than 1 million barrels from December 11 to 14, citing data from market intelligence firm Genscape.
International Brent crude oil futures were at $58.95 per barrel at 0141 GMT, down 66 cents, or 1.11 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down 40 cents, or 0.8 percent, at $49.48 per barrel.
“OPEC is reducing production to attempt to rebalance. However, data from Cushing still shows an oversupply,” Hue Frame, portfolio manager at Frame Funds, told Reuters.
“This isn’t being viewed favourably by the market, especially in combination with slow global growth.”
Currencies
The dollar was under pressure on Tuesday, as investors awaited the Federal Reserve’s meeting later in the week.
The dollar index, which measure the greenback against a basket of six major currencies, was flat at 97.1 after losing 0.4 percent on Monday.
Precious metals
Gold prices were little changed in early Tuesday trading.
Spot gold steadied at $1,245.40 per ounce as of 0119 GMT.
U.S. gold futures were down 0.2 percent at $1,249.6 per ounce.
(Reporting by Gerard Aoun; Editing by Shane McGinley)
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