Gulf stock markets look set to fall on Thursday after oil tumbled about 4 per cent overnight, with Brent crude closing the last session at $48.06 (£37.04) a barrel, its lowest level since early May.
Saudi Arabia’s bourse has been supported in recent days by expectations that MSCI will on June 20 launch a review of whether to upgrade Riyadh to emerging market status. But an oil price below $50 (£38.55) may negate much of that positive factor by weighing on petrochemical shares.
Qatar’s stock market may fall further after the Qatari riyal dropped to an 11-year low against the dollar in the spot market – a sign of capital outflows – and Standard & Poor’s downgraded Qatar’s debt because of the diplomatic rift in the Gulf.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.