Oil hits new highs on US fuel demand, tighter supply | Reuters
Oil prices hit new peaks on Wednesday with the global Brent benchmark touching its highest since January after a steep drawdown in U.S. fuel stockpiles and Saudi and Russian output cuts offset concerns about slow demand from China.
Brent crude settled $1.38, or 1.6%, higher at $87.55 a barrel, its highest since Jan. 27.
West Texas Intermediate crude (WTI) closed $1.48, or 1.8%, higher at $84.40, at its highest since November 2022.
Wednesday, 9 August 2023
Gulf stock markets end mixed on China deflation risk | Reuters
Gulf stock markets end mixed on China deflation risk | Reuters
Stock markets in the Gulf ended mixed on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook.
China data showed consumer prices fell 0.3% in July from a year earlier, the first decline since February 2021, although slightly better than the forecast of a 0.4% drop. Producer prices fell for a tenth consecutive month.
Dubai's main share index (.DFMGI) eased 0.2%, hit by a 0.6% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Dubai stock market was seeing some volatility with traders considering economic developments in China, said Ahmed Negm, Head of Market Research MENA at XS.com
"At the same time, business conditions remain strong in Dubai and could help keep the market on a positive course despite some exposure to price corrections."
Saudi Arabia's benchmark index (.TASI) reversed early losses to close 0.4% higher, with Al Rajhi Bank (1120.SE) rising 1.4%.
Oil - which fuels the Gulf economy - hit new peaks with Brent crude touching the highest since April as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.
The Qatari benchmark (.QSI) added 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) advancing 1.1% despite reporting a fall in first-half earnings.
The Qatari bourse rebounded to a certain extent after some price corrections, Negm said, adding it, however, could remain exposed to new losses over the short term.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged 0.1% higher.
Egypt's headline inflation is forecast to climb yet further in July after having hit a record high in June, a Reuters poll showed on Tuesday, as food prices continued to soar.
Stock markets in the Gulf ended mixed on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook.
China data showed consumer prices fell 0.3% in July from a year earlier, the first decline since February 2021, although slightly better than the forecast of a 0.4% drop. Producer prices fell for a tenth consecutive month.
Dubai's main share index (.DFMGI) eased 0.2%, hit by a 0.6% fall in blue-chip developer Emaar Properties (EMAR.DU).
The Dubai stock market was seeing some volatility with traders considering economic developments in China, said Ahmed Negm, Head of Market Research MENA at XS.com
"At the same time, business conditions remain strong in Dubai and could help keep the market on a positive course despite some exposure to price corrections."
Saudi Arabia's benchmark index (.TASI) reversed early losses to close 0.4% higher, with Al Rajhi Bank (1120.SE) rising 1.4%.
Oil - which fuels the Gulf economy - hit new peaks with Brent crude touching the highest since April as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.
The Qatari benchmark (.QSI) added 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) advancing 1.1% despite reporting a fall in first-half earnings.
The Qatari bourse rebounded to a certain extent after some price corrections, Negm said, adding it, however, could remain exposed to new losses over the short term.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged 0.1% higher.
Egypt's headline inflation is forecast to climb yet further in July after having hit a record high in June, a Reuters poll showed on Tuesday, as food prices continued to soar.
GCC sovereign wealth funds' assets under management grow to $4 trillion
GCC sovereign wealth funds' assets under management grow to $4 trillion
GCC sovereign wealth funds’ assets under management have grown by 20 per cent on average in the past two years to reach about $4 trillion, driven by higher oil prices, according to a new report.
This is the equivalent of about 37 per cent of global SWF AUMs, data and research company S&P Global Market Intelligence said in a report on Tuesday.
Their size is almost the equivalent of the sum of all the AUMs of Asia, Latin America and sub-Saharan Africa's SWFs, the company said.
Among the world’s 10 largest investments on behalf of state-owned investors during 2022, five were from GCC sovereign investors, with the UAE accounting for 62 per cent of total capital deployed (through three funds, namely Abu Dhabi Investment Authority, Mubadala and ADQ), 28 per cent from Saudi Arabia and 10 per cent from Qatar, according to S&P Global Market Intelligence data.
GCC sovereign wealth funds’ assets under management have grown by 20 per cent on average in the past two years to reach about $4 trillion, driven by higher oil prices, according to a new report.
This is the equivalent of about 37 per cent of global SWF AUMs, data and research company S&P Global Market Intelligence said in a report on Tuesday.
Their size is almost the equivalent of the sum of all the AUMs of Asia, Latin America and sub-Saharan Africa's SWFs, the company said.
Among the world’s 10 largest investments on behalf of state-owned investors during 2022, five were from GCC sovereign investors, with the UAE accounting for 62 per cent of total capital deployed (through three funds, namely Abu Dhabi Investment Authority, Mubadala and ADQ), 28 per cent from Saudi Arabia and 10 per cent from Qatar, according to S&P Global Market Intelligence data.
Lure of sovereign wealth fuels hedge fund rush to #Dubai | Financial Times
Lure of sovereign wealth fuels hedge fund rush to Dubai | Financial Times
A growing number of top hedge funds are setting up shop in Dubai, as the lure of low taxes and the region’s deep-pocketed investors cements the emirate’s status as an industry hub.
A growing number of top hedge funds are setting up shop in Dubai, as the lure of low taxes and the region’s deep-pocketed investors cements the emirate’s status as an industry hub.
Quant investing giant AQR, and multi-strategy firms such as Sculptor and Lighthouse Investment Partners are among the hedge funds to establish a presence in the city over the past year, according to regulatory disclosures and industry sources.
The moves highlight how the aftermath of the Covid-19 pandemic has added impetus to the Dubai authorities’ two-decade push to become the regional base for the hedge fund industry. Of the 40 funds registered in the emirate as of July, more than a third arrived in the past 12 months, according to figures from the Dubai International Financial Centre. The majority are London or New York-based firms opening subsidiaries.
Executives and traders say the absence of personal income tax in the United Arab Emirates has left the city well-placed in an escalating war for hedge fund talent which has seen in-demand portfolio managers offered millions of dollars in signing bonuses.
#AbuDhabi oil giant builds internal ‘investment bank’ to chase $50bn in global deals | Financial Times
Abu Dhabi oil giant builds internal ‘investment bank’ to chase $50bn in global deals | Financial Times
The Abu Dhabi National Oil Company has amassed a nearly 50-strong team of dealmakers and is pursuing roughly $50bn in transactions as part of a push to diversify its business and expand abroad.
The Abu Dhabi National Oil Company has amassed a nearly 50-strong team of dealmakers and is pursuing roughly $50bn in transactions as part of a push to diversify its business and expand abroad.
Adnoc, led since 2016 by Sultan al-Jaber, has quietly assembled a suite of Wall Street talent, according to people familiar with its inner workings, transforming the United Arab Emirates’ once sleepy state group into a business more like an energy supermajor.
The investment team, run by former senior Morgan Stanley executive Klaus Froehlich, has become one of the most important units for the company’s strategy, with insiders describing it as akin to an “internal investment bank”.
Adnoc’s pursuit of a bevy of multibillion-dollar acquisitions under Jaber’s strategy has stood out in an otherwise dismal year for dealmaking. The group is pursuing deals simultaneously with Brazilian petrochemical maker Braskem, Austria’s OMV and German chemical company Covestro.
Most Gulf stock markets fall in early trade, #Qatar rises | Reuters
Most Gulf stock markets fall in early trade, Qatar rises | Reuters
Most major stock markets in the Gulf fell in early trade on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook.
Closely watched China data on Wednesday showed consumer prices fell 0.3% in July from a year ago, the first decline since February 2021, although slightly better than the forecast of a 0.4% drop. Producer prices fell for a tenth consecutive month.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1.6%, while Savola Group (2050.SE) retreated 8.2% after reporting a sharp fall in second-quarter profit.
However, the losses on the index were capped by a 1.1% rise in oil giant Saudi Aramco (2222.SE).
Aramco on Monday reported a net profit of 112.81 billion riyals ($30.07 billion) for the second quarter, beating a company-provided median estimate of $29.8 billion.
The group declared a base dividend of more than $19.51 billion, roughly in-line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter, the company said.
Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.6% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
However, the Qatari index (.QSI) advanced 0.5% as most of the stocks were in positive territory including petrochemical maker Industries Qatar (IQCD.QA), which was up 1.7% despite reporting a rise in first-half earnings.
Oil - a catalyst for the Gulf's financial markets - edged higher as tighter supply arising from output cuts by Saudi Arabia and Russia offset concerns over slow demand from top crude importer China and a report showing rising U.S. crude inventories.
Most major stock markets in the Gulf fell in early trade on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook.
Closely watched China data on Wednesday showed consumer prices fell 0.3% in July from a year ago, the first decline since February 2021, although slightly better than the forecast of a 0.4% drop. Producer prices fell for a tenth consecutive month.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1.6%, while Savola Group (2050.SE) retreated 8.2% after reporting a sharp fall in second-quarter profit.
However, the losses on the index were capped by a 1.1% rise in oil giant Saudi Aramco (2222.SE).
Aramco on Monday reported a net profit of 112.81 billion riyals ($30.07 billion) for the second quarter, beating a company-provided median estimate of $29.8 billion.
The group declared a base dividend of more than $19.51 billion, roughly in-line with its payout for the first quarter.
It will also start paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter, the company said.
Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.6% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
However, the Qatari index (.QSI) advanced 0.5% as most of the stocks were in positive territory including petrochemical maker Industries Qatar (IQCD.QA), which was up 1.7% despite reporting a rise in first-half earnings.
Oil - a catalyst for the Gulf's financial markets - edged higher as tighter supply arising from output cuts by Saudi Arabia and Russia offset concerns over slow demand from top crude importer China and a report showing rising U.S. crude inventories.