Volatile markets end 2020 strong with vaccines, stimulus in sight | Reuters

Volatile markets end 2020 strong with vaccines, stimulus in sight | Reuters

Global commodity markets ended 2020 on a strong note, with recovering demand and widespread stimulus packages buoying prices after a roller coaster ride caused by the global coronavirus pandemic.

Rollouts of vaccines to combat the virus and trillions of dollars’ in fiscal support are expected to boost investment and spending in 2021, spurring demand for raw materials from oil to copper.

“It’s been a tumultuous year for the commodity market, as the oil meltdown in March changed how we measure and gauge risk in the entire commodity sphere,” Stephen Innes, chief global market strategist at brokerage Axi, told Reuters.

Oil edges higher, but posts 20% annual drop in tumultuous 2020 | Reuters

Oil edges higher, but posts 20% annual drop in tumultuous 2020 | Reuters

Global crude prices edged higher on Thursday but lost more than a fifth of their value in 2020, as lockdowns to combat the novel coronavirus depressed economic activity and sent oil markets reeling.

Still, Brent and U.S. crude benchmarks have more than doubled from April’s nadir as producers cut output to match weaker demand. News of coronavirus vaccine distributions also bolstered prices in the fourth quarter, helping futures recover to the highest in about 10 months.

On the last trading day of 2020, Brent rose 17 cents to settle at $51.80 a barrel. U.S. West Texas Intermediate rose 12 cents to settle at $48.52 a barrel. Brent fell 21.5% for the year, with WTI falling 20.5%.

Prices for 2020 bottomed in April as fuel demand collapsed due to the COVID-19 pandemic and after a price war between oil giants Saudi Arabia and Russia. WTI plummeted to a record low negative-$40.32 per barrel, while Brent fell to $15.98 barrel, the lowest since 1999.

#Saudi outperforms Middle East markets in 2020 | Reuters

Saudi outperforms Middle East markets in 2020 | Reuters

Saudi Arabian shares ended 2020 higher, outperforming other Middle East markets in a pandemic-ravaged year on the back of a recovery in oil prices and strong inflows, while Egyptian equities declined the most in the region.

Middle East stocks had fallen between 13% and 36% in the first quarter as the spread of COVID-19 and an oil price war between top producers Saudi Arabia and Russia raised fears of a global recession.

However, the markets trimmed some of their losses on economic aid from governments, an oil price recovery and progress on COVID-19 vaccines.

“The global distribution of vaccines and the process of vaccination in the GCC (Gulf Cooperation Council) region would instil further confidence in investors”, said Junaid Ansari, acting head of investment strategy and research at Kamco Invest.

The Saudi index closed down 0.8% on Thursday, but rose 3.6% in 2020 to log its fifth straight yearly gain.

“The recovery in crude oil prices to around the USD 50/b level supported TASI in H2-2020,” Ansari said.

Oil giant Saudi Aramco declined 0.7% for the year, but outperformed its global peers.

“The EM status and availability of companies with size and different sector exposures attracted foreigners, while the retail and domestic institutional investors provided much-needed liquidity to the Saudi market” said Joice Mathew, research analyst at United Securities.

Egypt’s benchmark index fell 0.2% and booked a yearly loss of 22.3%.

The country’s equities underperformed regional peers due to concerns over coroanvirus-related lockdowns that eclipsed good earnings from most companies, said Radwa El Swaify of Pharos Research.

The Dubai index dropped 1% to end the year down 10%, having declined as much as 36% in the first quarter.

“Dubai stocks recouped from the early losses, riding the reopening theme. However, we are yet to see major sectors of the economy fully recover from the pandemic issues,” United Securities’ Mathew said.

Abu Dhabi’s index eased 0.8% and lost 0.6% in 2020.

The Qatari index fell 0.9%, but eked out a gain of 0.1% for the year, its third straight yearly rise.

Kuwait’s stock market, the best performer in the region last year, slipped 0.1% to record a 13.3% yearly loss.

Bahrain’s index fell 7.5% in 2020 to log its first yearly decline in five, while the Omani index shed 8.1% for the year, extending losses to a fourth consecutive year.

#Saudi economy show healthy figures in November | ZAWYA MENA Edition

Saudi economy show healthy figures in November | ZAWYA MENA Edition

Saudi Arabia’s key economic indicators look healthy, a report said, adding that the money supply (M3) expanded 11.6% y-o-y in November, supported by a rise in M1 and M2, increasing 13.0% and 12.4%, respectively.

Credit to the private sector also increased 15.8% y-o-y in November, while bank claims on the public sector advanced 15.9% y-o-y in November and the deposits grew by 11.9% y-o-y in November, said Al Rajhi Capital, a leading financial services provider in the kingdom.

Further, the banking sector profits increased 9.8% y-o-y to SR4.1 billion in November (+15.8% y-o-y in October). Moreover, growth in mortgage continued with 79% y-o-y in November, driven by House and Apartment mortgages, which grew 86% y-o-y and 66% y-o-y, respectively. LDR came in at 74.9% in November Vs 75.6% in October.

POS transactions continued to maintain the uptrend, growing 32.6% y-o-y in November, driven by increase in ‘Food & Beverages’ (+57.7% y-o-y), ‘Restaurants & Hotels’ (+55.6% y-o-y), and ‘Clothing & Footwear’ (+8.5% y-o-y) segments. The spending in the local market, especially in the retail, food & beverages, and health segments, continues to support the economy.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

Take a Last Glimpse at a Nightmare Year for the World Economy - Bloomberg

Take a Last Glimpse at a Nightmare Year for the World Economy - Bloomberg

For the global economy, 2020 is ending with a sense of hope for the future, partly built on the assumption that it can’t surely be that bad again.

Such optimism is also founded on the rollout of vaccines to control the coronavirus pandemic. That means a return to some semblance of business-as-usual in the course of 2021 is now less ambitious a prospect than it once was.

But that outcome would arrive too late to save many millions of jobs and the buildup of hundreds of billions of dollars in newly created public debt throughout the world.

What began as a year clouded by the milder threats of a fractious U.S. presidential election, ongoing trade tensions with China, and a hard deadline for U.K. relations with the European Union soon became an existential ordeal to salvage any economic growth at all amid unprecedented lockdowns.

Oil set for 20% drop in 2020 as lockdowns weigh, market eyes more stimulus | Reuters

Oil set for 20% drop in 2020 as lockdowns weigh, market eyes more stimulus | Reuters

Global crude oil markets have lost about a fifth of their value in 2020 as strict coronavirus lockdowns paralysed much of the global economy, but prices have rebounded strongly from their lows as governments rolled out stimulus.

On Thursday, the last trading day of 2020, Brent was down 8 cents, or 0.2%, at $51.55 a barrel, as of 0756 GMT and U.S. West Texas Intermediate lost 13 cents, or 0.3%, to $48.27 a barrel.

“It is kind of year-end quiet but a weaker dollar is helping keep a floor under markets,” said Stephen Innes, chief global market strategist at Axi.

Brent and WTI have more than doubled from decade-lows seen in April, putting past a year which marked the first negative prices for WTI that shocked investors globally.

MIDEAST STOCKS- #Saudi shares set to finish 2020 higher, other Gulf markets subdued | Nasdaq

MIDEAST STOCKS-Saudi shares set to finish 2020 higher, other Gulf markets subdued | Nasdaq

Saudi Arabian Shares fell in early trade on the last day of the 2020, but were set to close the session with a yearly gain, overcoming the first-quarter shock triggered by a global recession fears on COVID-19 and the Saudi-Russia oil price war.

Other Gulf markets were set to end the year with losses except Qatar and Abu Dhabi, which were trading with marginal yearly gain of 1.1% and 0.3%, respectively.

All Gulf stock markets had fallen between 13% and 36% in the first quarter, with Bahrain extending the losses to the another. The markets, however, trimmed their losses partially in subsequent quarters on government stimulus and economic recovery hopes due to vaccine progress.

On Thursday, Saudi Arabia's main index .TASI which was set to extend its yearly gain to a consecutive fifth year, was down 0.3%, led by losses at Samba Financial Group 1090.SE and Saudi Aramco 2222.SE falling 1% and 0.3%, respectively.

Oil giant Aramco, which fell about 15% in the first quarter, is now about a percent down on a yearly basis, but outperforming its global peers.

The Abu Dhabi index .ADI edged up 0.1% as telecoms major Etisalat ETISALAT.AD gained 0.2%, while Abu Dhabi Islamic Bank ADIB.AD fell 1.5%.

The Dubai index .DFMGI was flat. Emaar Properties EMAR.DU lost 0.3% and Dubai Islamic Bank was up 0.2%.

Dubai stocks were the worst hit in the first quarter, falling 36%, and are down nearly 9% in year-to-date.

The Qatari index .QSI gained 0.1%, with Industries Qatar IQCD.QA rising 1%.

Kuwait's premier market index .BKP, the best performer last year in the Gulf region, dropped 0.2% and was down 13.3% on yearly basis.

Bahrain All Share Index .BAX was flat and set to see first yearly loss in last five years.

In Oman, the index .MSI, which is down 8% in year-to-date extending losses to a consecutive fourth year, was up 0.2%.