Tadawul Review:

Tadawul All Share Index (TASI) ended the first session of the week with a decrease of 79 points (-0.6%) to close at 12,605 levels. The market opened with a positive gap of 0.3% and maintained above the previous close till the afternoon before closing in the red. Many sectors closed in the negative including the Energy sector which fell by -2.4%. ARAMCO declined by -2.8%, falling below the SAR 40/sh mark to close at SAR 39.95/sh. The Materials sector ended the session in the green courtesy of SAUDI KAYAN and TASNEE which increased by +2.6% and +1.7%, respectively. Trading volumes closed in the positive with an increase of 3.1% while the values decreased by -8.5%. TASI has remained flat MTD as the investors have taken a back seat, booking profits at current levels, due to increased market volatility on the back of geopolitical tensions.

Market Wrap International:

The Federal Reserve are scheduled to meet next week with near market consensus of a 25-basis points rate hike announcement. The Fed's current thinking on when to raise rates will be widely scrutinized. On the economic data front, producer pricing report along with an update on retail sales for February are both going to be important economic statistics. Also, traders are likely to keep an eye on the London Metal Exchange to see if the nickel market will reopen. Other commodities are likely to trade with increased volatility as a result of the ongoing Ukraine-Russia developments. On the earnings front, the notable company FedEx is expected to announce its financial results this week.

As commodity prices rise and the prospect for economic development worsens, the crisis in Ukraine has significantly increased risks of stagflation in Europe. This will be the backdrop within which key central banks are expected to announce their monetary policy this week. Among them are UK, Russia and Turkey. The Bank of England is expected to raise interest rates for the third time in a row supported by data on unemployment in the United Kingdom. The tightness of the labor market has been highlighted by record vacancies. After doubling rates in an emergency bid to stop a rush on foreign-currency deposits, the Bank of Russia is likely to keep its benchmark rate on hold. Inflation has already begun to rise, and there isn't much that monetary policy can do to stop it.