By Ateeq Shariff
April 6 (Reuters) - Stock markets in the Gulf ended
lower on Thursday as mounting evidence of a U.S. economic
slowdown fuelled worries about a possible global recession.
The U.S. services sector slowed more than expected in March
as demand cooled, while a measure of prices paid by services
businesses fell to the lowest in nearly three years.
Fed fund futures are indicating a 62.5% chance of the U.S.
central bank pausing its rate hikes in May and a 51.3% chance of
a rate cut at its July meeting, according to CME Group's
Fedwatch tool.
Most Gulf Cooperation Council countries, including Saudi
Arabia, the United Arab Emirates and Qatar, have their
currencies pegged to the U.S. dollar and follow the Fed's policy
moves closely, exposing the region to a direct impact from
monetary tightening in the world's largest economy.
Saudi Arabia's benchmark stock index eased 0.1%,
extending losses from the previous session, hit by a 1.3%
decline in Retal Urban Development Co .
The Saudi bourse saw more price corrections as traders move
to secure gains in the current uncertain atmosphere, said Fadi
Reyad, chief market analyst at CAPEX.com.
"Global sentiment affected local stocks after U.S. economic
data altered expectations."
However, the index posted its third weekly gain of 3%.
Earlier this week, the benchmark registered sharp gains after a
surprise announcement by OPEC+ to further cut oil production.
Dubai's main share index dropped 0.4%, with
blue-chip developer Emaar Properties losing 1.4%.
Shares in UAE-based currency exchange company Al Ansari
Financial Services climbed 16.5% above its listing
price on its market debut.
In Abu Dhabi, the index retreated 0.3%, while the
Qatari index fell 0.2%.
Outside the Gulf, Egypt's blue-chip index tumbled
1.8%, as most of the stocks on the index were in negative
territory.
The Egyptian market is coming under increasing pressure as
risk aversion increases among investors on a global and local
stage, Reyad said.
SAUDI ARABIA eased 0.1% to 10,906
ABU DHABI lost 0.3% to 9,471
DUBAI dropped 0.4% to 3,415
QATAR declined 0.2% to 10,342
EGYPT fell 1.8% to 16,709
BAHRAIN eased 0.1% to 1,886
OMAN lost 0.9% to 4,756
KUWAIT down 0.4% to 7,725
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shounak
Dasgupta)
