Tadawul Review:

Tadawul All Share Index (TASI) posted a recovery on Sunday after four consecutive sessions of losses. The market increased by 314 points to close at 13,149 levels, up 2.4%. TASI maintained its positive momentum through the day after opening higher than the previous close. The recovery was led by index heavyweight i.e. Banks, Energy, and Materials contributing 157, 45, and 24 points respectively. Saudi Aramco (+4.2%) shares hit an all-time high on the back of strong results while Al Rajhi Bank also rose by 3.6% contributing 72 points to the index gains. Trading volumes and value slid by 33% each to 142mn shares and SAR6.2bn. The positive momentum in the market is likely to continue in the short run given the resurgence in Brent oil prices to USD111.6/bbl.

 

 

Market Wrap International:

Walmart, Target, Home Depot, and Macy's will all report earnings, dominating the earnings schedule this week. One of the more important economic reports likely to be released is the retail sales data. In the coming week, Fedspeak starts up again, with Federal Reserve Chairman Jerome Powell speaking at a Wall Street Journal conference on May 17. Powell will take the stage, with the market expecting a half-point interest rate raise at the Fed's policymaking committee meetings in June and July. With an official announcement of a $7 billion electric car facility near Savannah, Georgia, Hyundai is anticipated to shake up the electric vehicle industry.

Fears of prolonged inflation appear to be outnumbering recession concerns. While the hawks on the Governing Council appear to be winning the discussion, the monetary account of the European Central Bank may not completely represent the current situation, as President Christine Lagarde now appears to be indicating an increase in July. A second reading of euro-area inflation will confirm that it rose to +7.5% in April. On Wednesday, the UK will pay close attention to inflation, as statistics is expected to indicate that prices increased by 9% in April. The Bank of England will also be keeping a careful eye on the March labor market statistics, which is coming on Tuesday. If the labor market does not slow down, additional rate rises are expected to be implemented.