Gulf markets were subdued by geopolitical tensions and concerns about US interest rate cuts

Most stock markets in the Gulf were subdued on Sunday due to geopolitical conflicts and uncertainties surrounding US Federal Reserve policy.

In its first-ever direct attack on Israel, Iran sent a barrage of more than 300 missiles and drones on April 13 in retaliation for Israel’s suspected deadly attack on its embassy complex in Damascus on April 1.

Iranian Supreme Leader Ali Khamenei thanked the country’s armed forces for their attack on Israel and said the country had shown its might no matter how many targets were hit, Iran’s official news agency reported on Sunday.

Elsewhere, Chicago Federal Reserve President Austan Goolsbee said on Friday that progress in reducing inflation has “stalled” this year, becoming the latest US central banker to abandon his previous focus on the coming need for interest rate cuts drop.

In individual Middle Eastern markets, the Saudi benchmark index was 0.1% higher, helped by a 2.6% rise in ACWA Power.

The International Monetary Fund said Thursday that Middle Eastern economies will grow at a slower pace this year than previously expected as the war in Gaza, attacks on shipping in the Red Sea and lower oil production add to existing problems of high increase debt and borrowing costs.

The IMF has revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook.

The Qatari benchmark fell 0.4%, hit by a 1.6% decline at petrochemical maker Industries Qatar and a 1% drop at Qatar Islamic Bank.

Outside the Gulf, Egypt’s top index advanced 1% after falling more than 4% in previous sessions, led by a 1.4% rise at top lender Commercial International Bank.

Meanwhile, the Central Bank of Egypt’s net foreign assets (NFAs) deficit fell to the lowest in more than two years in March, apparently helped by a massive sale of real estate development rights and a currency reform, data on the CBE website. .