MIDEAST STOCKS-Gulf barely moves as weak growth prospects offset rising oil

MIDEAST STOCKS-Gulf barely moves as weak growth prospects offset rising oil:

"Gulf stock markets mostly moved sideways on Wednesday, drawing little strength from rising oil prices, while Egypt pulled back after closing at record highs for three straight days.

Brent oil futures rose to $61.70 per barrel, their highest since July 2015, while global equity markets continued climbing. The failure of Gulf bourses to rise on the back of these trends showed how gloomy investors have become about economic growth in the region.

Governments’ budget deficits will shrink substantially if oil stays above $60, but authorities are expected to continue austerity policies such as the introduction of a 5 percent value-added tax as soon as January. These are expected to keep growth modest in 2018 and weigh on companies’ profit margins."



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