- Asia shares gain from data from Beijing
- Major Gulf stock markets ended higher
- U.S. crude was down to $59.90 a barrel
- U.S. dollar gained against a basket of major currencies
- Gold fell to 1,410.01 an ounce
Oil prices dropped on Monday on concerns about demand from China, the world’s largest crude importer.
Brent crude dropped 22 cents at $66.50, while U.S. crude fell 31 cents to $59.90 a barrel.
However, China’s industrial output and retail sales were above forecasts, “suggesting that the economy in China is healthier than we previously been pricing,” Michael McCarthy, chief market strategist at CMC Markets in Sydney told Reuters.
Asia shares pulled ahead on Monday after Chinese data showed that its economy may start heading towards stability following Beijing stimulus.
MSCI’s broadest index of Asia-Pacific shares outside Japan ended 0.2 percent higher at 526.72 points. Australian shares, however, dropped 0.4 percent. Hong Kong’s Hang Seng index gained 0.3 percent.
“Investors may be scaling back easing expectation upon today’s data as fiscal measures appear to be working,” Westpac analyst Frances Cheung told Reuters.
“That said, we believe the PBoC will still be supportive of liquidity. Expect yields to be stable and any temporary bearishness to be expressed via swaps.” he added.
Middle East markets
Main Gulf stock markets ended higher on Sunday, as positive second-quarter results supported the indices.
The Saudi stock exchange main index Tadawul gained 0.5 percent supported by the performance of petrochemical firms and banks. Alinma Bank was up by 1.2 percent, and Al Rajhi Banking and Investment Corp rose 1 percent. Meanwhile, petrochemical companies Saudi Basic Industries Corp (SABIC) rose and Saudi Kayan Petrochemical Co gained 0.5 percent and 1.2 percent respectively.
In the UAE, Dubai index was up by 0.7 percent as property developers Union Properties gained 3.6 percent and Emaar Properties gained 1 percent. The Abu Dhabi index was also higher gaining 0.1 percent as Aldar Properties rose 3.9 percent.
As for the wider MENA region in Egypt, the index lost 1 percent dragged down by Orascom Investment Holding which lost 3.9 percent.
In currency markets, the U.S. dollar gained at 96.871 against a basket of major currencies, after the dollar index fell for three consecutive days with the chance of U.S. interest rates cut.
The Australian dollar reached a high of $0.7033 after the Chinese date, as it is usually seen as a liquid proxy for the Chinese yuan.
Gold dropped to 1,410.01 an ounce, after recently hitting six-year high of $1,438.60.
(Writing by Nada Al Rifai; Editing by Mily Chakrabarty)
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 2019