Tadawul Review:

Tadawul All Share Index (TASI) ended the first session of the Ramadan lower, declining by 8 points (-0.1%) to close at 13,083 levels. TASI opened in a positive gap from the last session but could not maintain its momentum succumbing to selling pressure. Sector’s performances were mixed, Banks closed down by -0.5%, and Energy also slipped by -0.4%. On the other hand, Utilities climbed by +2.6%, and Materials rose by +0.5%. As expected, trading volumes and values declined dramatically in the first session of Ramadan, falling by -45% and -43% respectively to reach 117mn shares and 5.2bn Riyals. Brent's price fell on Friday and reached USD104.4/bbl after the US announced its record release of oil reserves to mitigate the impact of surging prices. TASI performance is likely to remain subdued owing to the Ramadan season and lack of triggers.

Market Wrap International:

Market participants are expected to be eagerly waiting for the FED minutes scheduled to be released mid-week where expectations are that the FOMC will now take resolute action against inflation, thanks to March's strong labor market report. The evidence is progressively pointing to strong hiring and symptoms of the labor shortage gradually easing. Markets are now nearly fully pricing in 50 basis point raises at each of the Fed's next two meetings. The release of minutes from FOMC meeting on Wednesday, might provide yet another reason for bond markets to drop off. Further down the week, initial jobless claims will continue to indicate that the labor market is improving. Last week's data revealed a record-low insured unemployment rate of 0.9 percent, signaling strong labor market tightness.

As Europe's cost-of-living problem worsens, the European Central Bank will release its report on the March monetary policy meeting. Given the ECB's recent hawkish tone, investors will closely examine the minutes of the meeting, which are due on Thursday, for any clues on when interest rates will be raised this year. Elsewhere, inflation is skyrocketing as a result of Russia's assault on Ukraine and rising energy expenses, while the growth outlook is weakening. In the aftermath of the invasion of Ukraine, sanctions have caused prices in Russia to skyrocket. According to weekly data, headline inflation will exceed 15% year over year in March, with risks pointing to a higher level. Finally, on April 10, voters in France will go to the polls to determine whether to grant Emmanuel Macron, the clear front-runner in the polls, a second five-year term as president.