Tadawul Review:

Tadawul All Share Index (TASI) advanced slightly on Sunday's ‎session by +11 points, closing at 11,609 levels. TASI opened ‎the session down by -7 points, and it continued to decline, ‎reaching its intraday low by -40 points in the first trading ‎hour. However, TASI then started to rise until the end of the ‎session. In general, 8 out of 20 sectors closed in the green ‎zone, while 126 of 223 stocks rose and 82 fell. Banks (+0.2%), ‎Materials (+0.4%), and Telecom (+0.5%) sectors contributed ‎the most to the index's (+17 points) rise. Stock-wise, Saudi ‎Awwal Bank (+1.8%), Alinma Bank (+1.6%), and Sabic ‎‎(+0.8%) were the major contributors. The trading volume ‎activity increased by +13% DoD to reach 318mn shares, while ‎the trading value decreased by -8% DoD to reach SAR6.0 bn. ‎

 

 

 

Market Wrap International:

The global equity markets are likely to remain directionless in near-term pending important CPI data in the U.S and the start of earning seasons for June-end. The latest data release in key countries point to persistent inflation pressure along with slow-down in economic activity. Next week's economic calendar may further substantiate the similar trends. Meanwhile, market views on future direction of interest rate remain divided and continue driving volatility in major assets. In the U.S, the CPI data for June is due on Wednesday and may point to persistent drop in headline inflation to 3.1% YoY. However, the core inflation matrix may remain elevated at 5.1%. Big banks in the U.S will also release June-end results towards the end of the week and may set the tone for the rest of the result season.

In Europe, the key data points include Euro area industrial production, inflation, trade and unemployment and monthly GDP data in the U.K. Overall, the data may put more pressure on the central banks (ECB, BOE) to do more to rein in inflationary pressure.

Next week’s data on trade in China will likely be a key focus area for the region with investors looking for clues to recovery in economic activity in the country. Other data points relate to inflation, and GDP/output for a number of countries in the region.