Global economy fears of recession risks weigh on Gulf markets

Gulf markets in early trading on Thursday extended their losses amid falling oil prices and worries of global recession risks triggered by disappointing economic data out of China and Europe.

Brent crude LCOc1 was down 37 cents, or 0.6 percent, at $59.11 a barrel by 0300 GMT, after falling three percent in the last session.

Gross domestic product (GDP) growth in the 19-country euro zone was 0.2 percent in the second quarter compared with the previous quarter, a slowdown from 0.4 percent percent growth in the first three months of the year.

China’s economy stumbled more than expected in July, with industrial output growth cooling to a more than 17-year low, as the intensifying U.S. trade war took a heavier toll on businesses and consumers.

In Dubai, the index dropped 1.5 percent as most of its real estate and banking shares traded lower. Dubai’s largest listed developer Emaar Properties fell three percent while Emirates NBD shed 0.9 percent.

DAMAC Properties decreased 3.4 percent. The firm reported a nearly 87 percent drop in second-quarter net profit on Wednesday, hurt by the emirate’s slumping property market.

Qatar’s index was down 1.4 percent at 9,529 points, decreasing further from previous session’s closing when it hit lowest loss in nearly a year. Most of the companies traded in red territory with Qatar National Bank dragging the index most as it plunged 2.3 percent and Qatar Insurance fell 4.3 percent.

In Abu Dhabi the index slipped 0.8 percent with First Abu Dhabi Bank sliding 0.8 percent, and Abu Dhabi Commercial Bank shedding 1.2 percent.

Saudi Arabia and Oman will resume trading on Sunday after the Eid break.

Source: Reuters