Tadawul Review:
Tadawul All Share Index (TASI) fell on Tuesday by -79 (-0.7%) to close at the 11,156 level. TASI opened the session on a slight positive note of 5 points but then started to decline during the session until the end. In general, 17 out of 20 sectors closed in the red zone, while 133 of 223 shares fell and 81 rose. Energy (-1.4%), Materials (-0.7%), and Banks (-0.3%) sectors contributed the most to the index fall. Stockwise, Aramco (-1.5%), Saudi Telecom (-1.8%), and Saudi National Bank (-0.9%) were the major contributors. The trading volume activity increased by 1% DoD to reach 234mn shares, while the trading value declined by -7% DoD to reach SAR6.0bn.
The global stock markets stabilized on Tuesday, experiencing a slight deceleration as the dollar rebounded from its overnight decline, a day before the release of crucial US inflation data, which holds the potential to influence the timing and likelihood of future interest rate rises by the Federal Reserve. In the U.S, The S&P 500 edged down by -0.6% with 8 out of eleven listed sectors fall and Nasdaq composite was also negative by -1.0%. The yields on 2-10-year tenures rose by 0.4 |0.6bps.
In Europe, the stocks remained steady as investors anticipated crucial US inflation data on Wednesday, seeking indications that could shed light on the Federal Reserve's future policy direction. The Stoxx Europe 600 edged down by -0.2% while. The FTSE 100 gained by +0.4% as positive British jobs data increased the appeal of British stocks to investors overseas. The country-level indices, , moved in the same direction and were down in a range (-0.5|-0.3%). Meanwhile, wage growth in the UK remained at a record high during the three-month period ending in July, indicating sustained inflationary pressures.
In Asia, the stock markets displayed volatility on Tuesday as traders closely monitored the ambiguous economic prospects in China and engaged in negotiations pertaining to currency exchange rates. The indices in China closed negatively (Shanghai Composite: -0.2%, Hang Seng: -0.4%). In contrast, the Japanese benchmarks displayed a positive performance, with TOPIX closing positively by 0.8% and NIKKEI 225 recording a gain of 1.0%. Other major indices within the region fluctuated within a range of (-0.8|+0.9).