Geopolitical Tensions and Fed Uncertainties Weigh on Gulf Stock Markets
Iran's Direct Attack on Israel Rattles Markets
Iran made headlines with its first-ever direct attack on Israel, launching over 300 missiles and drones in retaliation for a suspected strike on its embassy compound in Damascus. Supreme Leader Ali Khamenei lauded Iran's armed forces for their actions, adding to geopolitical concerns.
Mixed Signals from U.S. Federal Reserve
Chicago Federal Reserve President Austan Goolsbee's remarks on inflation concerns reverberated across markets, signaling a stall in progress and shifting attention away from anticipated interest rate cuts.
Market Performances Across the Middle East
Saudi Arabia: Saw a marginal 0.1% increase, buoyed by a 2.6% surge in ACWA Power.
Qatar: Experienced a 0.4% decline, impacted by losses in Industries Qatar and Qatar Islamic Bank.
Egypt: Witnessed a 1% rise in its blue-chip index after recent declines, led by Commercial International Bank.
Bahrain: Registered a slight 0.2% decrease.
Oman: Fell by 0.3%.
Kuwait: Posted a 0.9% gain, reaching 7,643.
IMF Outlook for MENA Region
The International Monetary Fund revised down its growth forecast for the Middle East and North Africa (MENA) region to 2.7%, citing various challenges including the conflict in Gaza, Red Sea attacks, and decreased oil output, in addition to existing economic hurdles like high debt and borrowing costs.
Egypt's Economic Indicators
The Central Bank of Egypt reported a notable improvement in net foreign assets (NFAs) deficit, marking a two-year low, attributed partly to a substantial property rights sale and currency reforms.
