Gulf markets decline and fears of raising US interest rates
Stock markets in the Gulf region fell during the past hours, amid warnings about the possibility of the Federal Reserve (the US central bank) raising interest rates and fears of the escalation of the conflict in the Middle East.
The strength of the American economy
Federal Reserve Chairman Jerome Powell said that the strength of the US economy and the continued increase in job opportunities may require more stringent borrowing conditions to control inflation.
Monetary policy in the six Gulf Cooperation Council countries is usually guided by the decisions of the US Central Bank because the currencies of most of those countries are pegged to the dollar.
The Saudi index declined
The Saudi index fell for the third session in a row, closing down 1.5%, with Elm Company shares falling 2.3% and Al Rajhi Bank shares, the largest Islamic bank in the world in terms of assets, falling 2.1%.
The Qatari index continued to decline for the fifth session in a row, closing down 0.9%, and the shares of Industries Qatar and Qatar Navigation lost 2.2% and 3%, respectively, and the shares of Qatar National Bank, the largest in the Gulf region, fell by 2.1%.
Stock market in Egypt
Outside the Gulf region, Egypt's leading stock index rose 2.3%, amid gains for almost all stocks. Shares of Eastern Company, Eastern Company, and Talaat Moustafa Group jumped 8.1%, respectively.
Today, fears have increased about the risk of the fighting between Israel and the Palestinians escalating and turning into a broader conflict in the Middle East after the United States sent more military assets to the region coinciding with Israel’s bombing of the Gaza Strip last night and also launching strikes on targets in Lebanon and Syria.