Tadawul Review:

Tadawul All Share Index (TASI) underwent one more session of negative return and closed with a loss of 71points (-0.53%) at 13,463 levels. The negativity in the index was visible from the start as the index breached 13,400 levels on the open. The index struggled to recover for the rest of the session. Trading volumes remained low (down 32% DoD) at 124mn shares. Utilities, Software, and diversified Financial were the only sectors with positive returns for the day. Investors appear to have taken a cue from the volatility in the international markets over the weekend. Lack of any major result-related trigger has also contributed to a lack of interest from the investors. The index is unlikely to show any major move in the near term and may continue to move in a narrow band.

 

Market Wrap International:

Apple, Amazon, Microsoft, Alphabet, Meta Platforms (META), and Intel will all be on the earnings stage, putting them in the spotlight. So far, the earnings season has been a mix of high-flying results (Tesla) and significant disappointments (Netflix). While the economic calendar contains reports on new home sales, durable goods orders, pending house sales, GDP, and the trade balance, the Federal Reserve's expectations may be the main emphasis. Members of the FOMC will be unable to speak publicly before to the meeting, but analysts will be buzzing. According to Bank of America, the Fed will raise the fed funds rate by 50 basis points during the next three sessions and then by 25 basis points until it reaches 3.50% in May 2023.

On Sunday, French President Emmanuel Macron defeated his far-right opponent Marine Le Pen by a comfortable margin, securing a second term and averting a political disaster. Investors who had predicted that a Marine Le Pen triumph would roil European markets will be relieved by the victory. The euro-area economy's performance in the first quarter will be revealed through GDP figures. As a result of the resumed distribution of Covid-19 variations over the winter and the cost-of-living issue, modest developments are expected in the region. After reaching a new high in March, inflation in the euro region is expected to take a break. Since then, commodity prices have fallen, and many governments in the region have reduced fuel taxes. Even still, as other price pressures increase, this will do little to assuage inflation fears among hawks at the European Central Bank. On Friday, Russia is expected to slash interest rates as policymakers shift their focus to cushioning the economy's damage.