Abu Dhabi: Major stock markets in the Gulf tumbled on Monday, tracking Asian shares lower on fears that the United States could be heading for recession, while concerns about a widening conflict in the region added to the worries. The U.S. unemployment rate jumped to near a three-year high of 4.3% in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession. The worryingly weak July payrolls report saw markets price in a 78% chance the Federal Reserve will not only cut rates in September, but ease by a full 50 basis points. Saudi Arabia’s benchmark index declined 3.1%, dragged down by a 4.7% slide in aluminium products manufacturer Al Taiseer Group, while the country’s biggest lender Saudi National Bank retreated 4% despite reporting a rise in quarterly profit. The Qatari benchmark fell 2.5%, with all its constituents in negative territory including the Gulf’s largest lender by assets Qatar National Bank, which was down 2.3%. Dubai’s main share index dropped 4.2%, weighed down by a 8.9% plunge in blue-chip developer Emaar Properties. Web Desk
In Abu Dhabi, the index was down 2.7%.
Oil – a catalyst for the Gulf’s financial markets – extended losses in a volatile session, as fears of a recession in top oil consumer the United States offset supply worries stemming from mounting tensions in the Middle East, the world’s largest oil producing region.
