Middle East markets expected to ride out global uncertainty
Observers are optimistic that the Middle Eastern markets, which had a stellar year in 2022, will yield equally promising results in 2023, based on the larger inflow of investments and companies moving into the region.
In 2022, GCC markets had a 21 per cent share of the global IPO volume, as compared to only 2 per cent in 2021, with expectations that big names will be going public this year, following in the footsteps of Emirati companies ADNOC Gas and Al Ansari Exchange, which were repeatedly over-subscribed, reflecting high demand on investments in the region.
Since the beginning of 2023, the investment world has witnessed multiple shocks, leading to markets in an almost constant state of turbulence.
Market stakeholders, including brokers, traders and companies, have centered their primary focus on central banks, especially the Federal Bank, awaiting to see if interest rates are going to rise, and if so, if they will keep increasing. The banking crisis caught everyone by surprise, and the focus of observers shifted from expecting the rise of interest rates to anticipating rate cuts since the crisis started showing ripple effects in Europe with the collapse of Credit Suisse.
Friday 21 April 2023
Oil dips on recession fears, slower demand | Reuters
Oil dips on recession fears, slower demand | Reuters
Oil prices eased for the third straight day on Friday and looked set for a hefty weekly loss as softening U.S. economic data and a rise in U.S. gasoline inventories raised concerns about a recession and slower global oil demand.
Brent futures for June delivery were down by 30 cents, or 0.4%, at $80.80 a barrel at 0630 GMT. West Texas Intermediate crude (WTI) for June delivery fell 31 cents, or 0.4%, to $77.06 a barrel.
Both benchmarks slid by more than 2% to their lowest level since late March on Thursday amid fears of a recession, and were on track for a weekly drop of about 6%.
"Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
"WTI is expected to trade in the $75-$80 range for the next week as investors try to figure out if U.S. gasoline demand will increase toward the summer driving season, and if China's oil demand will really pick up in the second half of the year," Kikukawa said.
Oil prices eased for the third straight day on Friday and looked set for a hefty weekly loss as softening U.S. economic data and a rise in U.S. gasoline inventories raised concerns about a recession and slower global oil demand.
Brent futures for June delivery were down by 30 cents, or 0.4%, at $80.80 a barrel at 0630 GMT. West Texas Intermediate crude (WTI) for June delivery fell 31 cents, or 0.4%, to $77.06 a barrel.
Both benchmarks slid by more than 2% to their lowest level since late March on Thursday amid fears of a recession, and were on track for a weekly drop of about 6%.
"Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
"WTI is expected to trade in the $75-$80 range for the next week as investors try to figure out if U.S. gasoline demand will increase toward the summer driving season, and if China's oil demand will really pick up in the second half of the year," Kikukawa said.
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