Tadawul Review:
Tadawul All Share Index (TASI) fell for the seventh day on Sunday by -62 (-0.5%) to settle at 11,154 level. TASI continued throughout the session, reaching its intraday low before minimizing its losses at the end of the session. In general, 15 out of 20 sectors closed in the red zone, while 102 of 223 stocks fell and 112 rose. Banks (-0.6%), Utilities (-2.0%), and Energy (-0.6%) sectors contributed the most to the index’s fall. Stockwise, Al Rajhi Bank (-0.9%), Aramco (-0.6%), and ACWA Power (-2.8%) were the major contributors. The trading activity witnessed a decline in volume and value of -19% and -24%, respectively, to reach 170mn shares and SAR4.8bn in value traded.
In the U.S, Last week's employment data further adds to this narrative, revealing a resilient job market that, while strong, did not raise significant concerns about the necessity for the Federal Reserve to implement further interest rate hikes as a measure against inflation. The investors are shifting their attention to next week’s inflation data, as it has the potential to influence the short-term direction of the equity rally, which has shown some instability in recent weeks.
In Europe, The Central Bank officials are set to discuss the possibility of a quarter-point interest rate increase on Thursday, with the outcome of the meeting in Frankfurt playing a crucial role in the decision. The debate will determine whether policymakers continue their trend of raising borrowing costs for the tenth time in a row or choose to take a pause. Additionally, the meeting is expected to convey a message of potential hawkishness.
In Asia, among the upcoming economic data releases, a series of figures from China is expected to attract significant attention. The focus will be on industrial output and retail sales, due Friday. It is anticipated that both indicators will show a slight improvement in August, which could potentially serve as an early indication that the world's second-largest economy is moving past its most challenging phase. thursday morning in Asia will also see the reaction to overnight inflation figures out of the US ripple through a range of asset classes.