Mideast Stocks Get a Mauling as Soleimani Death Raises Tension - Bloomberg:
The U.S. killing of Iran’s most senior military commander reverberated through Middle Eastern markets, sending stocks into retreat and setting the tone for what’s likely to be a volatile week.
All the region’s major equity gauges fell on Sunday. Kuwait’s dropped more than 4%, trimming a rally that made it the best market in the region last year. Saudi Aramco shares slumped as the country’s Tadawul All Share Index lost as much 2.1%, with local banks contributing the most to its decline. Benchmark stock indexes in the United Arab Emirates, Qatar, Bahrain, Israel, Egypt and Oman also weakened.
Geopolitical risks flared after Iranian General Qassem Soleimani was killed in Iraq last week in a drone attack ordered by U.S. President Donald Trump. Iran’s President Hassan Rouhani vowed revenge, while Trump said late Saturday the U.S. had identified 52 Iranian sites that would be hit “very hard” if Tehran retaliated.
“Investors who were hoping for lower geopolitical tension in the Middle East and North Africa in 2020 got their hopes dashed on the second day of the year,” said Mohammed Ali Yasin, chief strategy officer at Abu Dhabi-based Al Dhabi Capital Ltd. “2020 will continue to be a year of high geopolitical tensions.”
The U.S. killing of Iran’s most senior military commander reverberated through Middle Eastern markets, sending stocks into retreat and setting the tone for what’s likely to be a volatile week.
All the region’s major equity gauges fell on Sunday. Kuwait’s dropped more than 4%, trimming a rally that made it the best market in the region last year. Saudi Aramco shares slumped as the country’s Tadawul All Share Index lost as much 2.1%, with local banks contributing the most to its decline. Benchmark stock indexes in the United Arab Emirates, Qatar, Bahrain, Israel, Egypt and Oman also weakened.
Geopolitical risks flared after Iranian General Qassem Soleimani was killed in Iraq last week in a drone attack ordered by U.S. President Donald Trump. Iran’s President Hassan Rouhani vowed revenge, while Trump said late Saturday the U.S. had identified 52 Iranian sites that would be hit “very hard” if Tehran retaliated.
“Investors who were hoping for lower geopolitical tension in the Middle East and North Africa in 2020 got their hopes dashed on the second day of the year,” said Mohammed Ali Yasin, chief strategy officer at Abu Dhabi-based Al Dhabi Capital Ltd. “2020 will continue to be a year of high geopolitical tensions.”
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