Saudi Equities Extend Losing Streak as US Inflation Takes Spotlight
The Tadawul All Share Index extended its losses to a second day at 0.80% in the red on Tuesday as investors turned their attention to the latest inflation print of the world's biggest economy. The US annual inflation rate declined to 3.5% in June, compared with 4.2% in May. The core rate, meanwhile, also fell to 2.6% from 2.9% in the prior month. In other market news and also affecting sentiment is the continued attacks by the US and Iran against each other. The attacks, which reached their third consecutive night, pushed oil prices higher at closing. "Oil prices surged yesterday, with ICE Brent settling 9.6% higher on the day - back above $83/bbl. This strength has continued into early morning trading today, with little sign of easing tensions between the US and Iran. In fact, we're seeing the opposite with military strikes continuing, more commercial vessels hit in the Strait of Hormuz, and, importantly, the US reimposing its blockade on Iran. The return of the US blockade is much more impactful for markets than the previous suspension of the sanction waiver on Iranian oil," ING said in a note. Back at home, Saudi Arabia said that it intercepted missiles from Yemen's.
The Tadawul All Share Index extended its losses to a second day at 0.80% in the red on Tuesday as investors turned their attention to the latest inflation print of the world's biggest economy.
The US annual inflation rate declined to 3.5% in June, compared with 4.2% in May.
The core rate, meanwhile, also fell to 2.6% from 2.9% in the prior month.
In other market news and also affecting sentiment is the continued attacks by the US and Iran against each other.
The attacks, which reached their third consecutive night, pushed oil prices higher at closing. "Oil prices surged yesterday, with ICE Brent settling 9.6% higher on the day - back above $83/bbl.
This strength has continued into early morning trading today, with little sign of easing tensions between the US and Iran.
In fact, we're seeing the opposite with military strikes continuing, more commercial vessels hit in the Strait of Hormuz, and, importantly, the US reimposing its blockade on Iran.
The return of the US blockade is much more impactful for markets than the previous suspension of the sanction waiver on Iranian oil," ING said in a note.
Back at home, Saudi Arabia said that it intercepted missiles from Yemen's.