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- Asian shares follow European shares lower on IMF’s lower global growth forecast
- Egypt’s EGX30 rose 0.9 percent as CIB gained 2.2 percent
- Oil prices drop as growth concerns triggered fears over future demand
- Dollar, gold supported by growth concerns as investors shift from risky assets
Global markets
Asian shares dropped in early trading on Tuesday as the International Monetary Fund trimmed its global growth forecasts on Monday. Also data from China showed a slowdown in growth in the world’s second biggest economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5 percent, drifting away from a recent seven-week top.
Equity prices in Europe and Latin America were also hit on Monday, while U.S. markets were closed for a holiday.
“This is now the second IMF downgrade in a row,” ANZ analysts said in a note, according to a Reuters report.
“And while there have been some positive developments in recent weeks, risks remain skewed toward weaker growth, with a ‘no deal’ Brexit and sharper-than-expected slowdown in China getting special mentions.”
“Between the ongoing US/China negotiations and the UK’s Brexit impasse, market sentiment will continue to be dominated by geopolitics in the near term,” ANZ added.
Middle East markets
Dubai’s index dropped 0.6 percent, as Damac Properties dropped 4.1 percent and Emirates NBD dropped 0.8 percent after three days of gains following a 10 percent rise in fourth-quarter net profit.
Abu Dhabi’s index retreated 0.4 percent with First Abu Dhabi Bank, United Arab Emirates' largest lender, sliding 0.7 percent.
Saudi Arabia's index edged up 0.2 percent, with National Commercial Bank, its biggest bank, increasing 1.8 percent.
Qatar's index lost 0.4 percent with petrochemical maker Industries Qatar slipping 0.8 percent.
Egypt's blue-chip index EGX30 rose 0.9 percent with its largest bank, Commercial International Bank, gaining 2.2 percent.
Kuwait’s premier market index was mainly flat, while Oman’s index dropped 0.6 percent and Bahrain’s index edged up 0.2 percent.
Oil prices
Oil prices retreated in early trading on Tuesday as concerns over global growth triggered fears over future demand.
International Brent crude oil futures were down 10 cents, or 0.2 percent, at $62.64 by 0106 GMT. They closed down 0.1 percent on Monday.
U.S. West Texas Intermediate (WTI) crude futures were at $53.70 per barrel, down 0.1 percent, or 4 cents.
“Trade war concerns have reduced global growth expectations and with it comes a lower demand for energy,” Alfonso Esparza, senior analyst, OANDA, told Reuters.
Currencies
The dollar was supported on Tuesday by fears over growth concerns, as investors shifted from risky assets.
The dollar index, which measures the greenback against a basket of six major currencies, was steady at 96.33, holding near a 2-week high of 96.43 hit on Monday.
Gold prices
Gold prices were supported by growth worries as they are seen as a safe haven, but a stronger dollar pressured gold prices.
Spot gold was mostly unchanged at $1,279.61 per ounce by 0050 GMT, while U.S. gold futures fell 0.3 percent to $1,278.90 per ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
(gerard.aoun@refinitiv.com)
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