Most Gulf markets drop as China slowdown jitters weigh | Reuters

Most Gulf markets drop as China slowdown jitters weigh | Reuters

Most stock markets in the Gulf fell in early trade on Monday, tracking oil prices lower, as concerns over China's faltering economic growth outweighed support from OPEC+ production cuts.

Crude prices — a key catalyst for the Gulf's financial markets — slid 1.2% on Monday with Brent crude down at $75.73 a barrel by 0730 GMT.

Several major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world's second-largest economy was faltering.

Tepid data added to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.

Saudi Arabia's benchmark stock index (.TASI) was down 0.3%, dented by losses in most sectors with Jabal Omar (4250.SE) falling 1.4% and oil giant Saudi Aramco (2222.SE) shedding 0.5%.

Al Rajhi Bank (1120.SE), the world's largest Islamic bank by assets, lost 0.7%.

Dubai's benchmark stock index (.DFMGI) dropped 0.1% in early trade, weighed down by finance and utilities sectors, with Dubai Electricity and Water Authority (DEWAA.DU) slipping 1.1% and the Emaar Properties (EMAR.DU) slipping nearly 1%.

Commercial Bank of Dubai (CBD.DU) and Emirates Integrated Telecommunications (DU.DU) slid 5.2% and 1.5%, respectively.

In Abu Dhabi, the benchmark stock index (.FTFADGI) dipped 0.2%, dragged down by a 1% loss in Alpha Dhabi Holding (ALPHADHABI.AD) and 0.3% decline in First Abu Dhabi Bank(FAB.AD), largest lender in the United Arab Emirates.

Among the losers, Multiply Group (MULTIPLY.AD) and Easy Lease(EASYLEASE.AD) lost 1.6% and 1.5%, respectively.

In Qatar, the benchmark (.QSI) added 0.2%, with Qatar Gas Transport(QGTS.QA) (Nakilat) gaining 1.1% and Ahli Bank QPSC (AABQ.QA) trading 1% higher.

Earlier this month, OPEC+ had agreed on a new oil output deal. The group's biggest producer - Saudi Arabia - also pledged to make a deep cut to its output in July.

Saudi Arabia is the only member of OPEC+ with sufficient spare capacity and storage to be able to easily reduce and increase output. It was able to respond rapidly to excess supply that weakened the market in the early stages of the pandemic in 2020 when the group of producers implemented record output cuts.