Global equity markets continued the positive trajectory during the second week of 2020 as investors were encouraged by signing of phase-one trade agreement between the US and China and better than expected economic data, especially from the US.

The news of trade tensions was one of the top narratives for global markets, hence signing of the phase-one deal is an important move towards de-escalation of the trade tensions and also eases risk of new tariffs going forward. Oil prices continued to remain under pressure as it was down 0.20% for the week and 1.74% for the year, so far.

For the regional markets, all the 8 indexes closed in positive territory during the week, supported by sentiments in global markets, especially the signing of the phase-one trade deal. Furthermore, lack of news flow in Middle East tensions also led the regional markets move higher during the week. Dubai was the best performing index regionally with gains of 2.87%, followed by 2.65% in Bahrain.

Going forward, Q4 2019 earnings and key economic releases will continue to influence the global markets. Furthermore, the signing of the phase-one trade deal might make global investors focus on markets/sectors that were negatively impacted from the trade uncertainty for most part of 2019.

For the regional markets, quarterly earnings and easing of geopolitical risks will be two factors that will largely dominate the trading activity in the coming week.

© Press Release 2020

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