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- Asian shares retreat amid Brexit deal defeat
- Saudi Arabia’s index jumped 0.9 percent on Tuesday
- Oil prices dropped early on Wednesday
- Dollar weakens, gold prices edge higher
Global markets
Asian shares dropped in early trading on Wednesday as investors were cautious amid uncertainty in the United Kingdom.
Lawmakers voted on Tuesday against British Prime Minister Theresa May’s proposed exit deal with the European Union by the large majority of 432 to 202.
May’s loss overnight triggered political upheaval that could lead to a disorderly exit from the European Union on March 29 or even to a reversal of the 2016 decision to leave.
MSCI’s broadest index of Asia-Pacific shares outside Japan was a touch lower. China's blue-chip CSI300 index of Shanghai and Shenzhen shares fell 0.1 percent on Wednesday.
“Elections tend to cause sell offs in markets because they’re inherently uncertain events but the UK situation is more complex than a normal vote,” Stephanie Kelly, senior political economist at Aberdeen Standard Investments in Edinburgh, told Reuters.
Middle East markets
Saudi Arabia's index gained 0.9 percent on Tuesday as higher oil prices boosted the index. Riyad Bank rose 1.6 percent. The lender has picked Goldman Sachs to advise on its merger talks with National Commercial Bank, Reuters reported, citing sources familiar with the matter.
In Dubai, the index lost 1.5 percent, weighed down by a 9.8 percent slide in developer Damac Properties and a 2.1 percent drop in Emirates NBD’s shares.
In Abu Dhabi the index fell 0.3 percent as Aldar Properties was down 2 percent while United Arab Emirates' largest lender First Abu Dhabi Bank shed 0.7 percent.
Qatar's index rose 0.9 percent to touch its highest since March 2017 with 17 of its 20 stocks climbing.
The Egyptian blue-chip index EGX30 was up 0.8 percent with Commercial International Bank gaining 2.2 percent and Egyptian Resorts jumping 10 percent.
Kuwait’s premier market index was mainly flat while Bahrain’s index edged 0.3 percent lower and Oman’s index dropped 0.7 percent.
Oil prices
Oil prices dropped on worries over a global economic slowdown.
International Brent crude oil futures were at $60.46 per barrel at 0146 GMT, down 18 cents, or 0.3 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were down 23 cents, or 0.4 percent, at $51.88 a barrel.
“Fundamentals offer no clear price direction,” Norbert Ruecker, head of commodity research at Swiss bank Julius Baer, told Reuters.
“The oil market remains amply supplied and prices are set to trade rangebound,” he said. “Softening demand makes too high prices short-lived ... Similarly, (supply) cuts and slowing shale output make too low prices short-lived.”
Currencies
The dollar dropped early on Wednesday, as analysts bet that the U.S. Federal Reserve would put its policy tightening on pause in 2019.
The dollar index, which measures the greenback against a basket of major currencies, fell 0.1 percent.
Precious metals
Gold prices edged higher on a weaker dollar.
Spot gold was up 0.1 percent at $1,290.56 per ounce at 0050 GMT.
U.S. gold futures had risen 0.2 percent to $1,290.60 per ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
(gerard.aoun@refinitiv.com)
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