DUBAI: Stock markets in the Gulf ended lower on Thursday as mounting evidence of a US economic slowdown fuelled worries about a possible global recession.
The US 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 US 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 US 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 US economic data altered expectations.”
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