Gulf markets drop as China slowdown jitters weigh

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, reported Reuters.

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.