Gulf stock markets continued to slide on September 12, 2024, primarily driven by falling oil prices and rising concerns over U.S. inflation data. Saudi Arabia's main stock index, known as TASI, fell by 1.8%, with significant losses reported from major companies such as Al Taiseer Group, which was down 1.7%, and ACWA Power Co., which saw a decline of 5.1%. Similarly, Dubai's index dropped by 0.9%, led by a 2.7% decline in Emirates NBD. Abu Dhabi's index also fell by 0.9%, while Qatar's index edged down by 0.2%. In contrast, Egypt's blue-chip index gained 1.3%, buoyed by an 8.8% increase in Egypt Kuwait Holding. [a3e620b9]
The downturn in Gulf markets coincides with OPEC's recent revision of its 2024 global oil demand growth forecast, which was cut for the second consecutive time. Notably, the organization reduced its estimate for China's oil demand growth from 700,000 to 650,000 barrels per day, further contributing to the bearish sentiment in the region. [a3e620b9]
Adding to the market's woes, U.S. consumer price data for August revealed a slight increase, with a 0.2% rise in the Consumer Price Index (CPI) and a year-on-year increase of 2.6%. This data is expected to influence the Federal Reserve's decisions regarding interest rates, which are closely monitored by investors in the Gulf region due to the currency peg to the U.S. dollar. [a3e620b9]
Earlier reports indicated that Gulf markets had faced turbulence on September 4, 2024, as oil prices dipped due to potential resolutions in Libyan oil exports and fears of dwindling global demand. The mixed signals from the U.S. economy had already prompted a cautious approach among traders. [3703da83]
As the Gulf region grapples with these economic challenges, investors remain vigilant, closely monitoring developments in both the oil market and U.S. economic indicators, which will likely dictate market movements in the coming weeks. [3703da83]