Gold prices bounced back yesterday, lifted by a weaker USD and expectations that weak US job-opening data could signal the economy is cooling — and that the Fed might consider going to a rate cut of more than a quarter point this month, Reuters reports. The report showed job openings in July were at their lowest level in 3.5 years.

REMEMBER- All eyes are on tomorrow’s US jobs report for insights into the US economy and the Fed’s next moves after Fed boss Jay Powell’s emphasized the risks of a weaker labor market. A soft August labor figure could stoke fears of a sharper economic slowdown and tip the scales towards a 50 bps rate cut.

Gold could see a short-term dip on the back of the elevated positioning, Suki Cooper, an analyst at Standard Chartered told Bloomberg, noting that gold prices are higher than in any previous rate-cutting cycle. However, Cooper sees gold prices reaching USD 2.7k per ounce by 2025.

THE MARKETS THIS MORNING-

Asian markets are thoroughly mixed in early trading this morning, with the Nikkei and Hang Seng down slightly, the Kospi leading the gainers (+1.1%), the ASX 200 up nearly 0.4%, and Shanghai flat.

Futures point to European equities dipping at the opening bell, while Wall Street and Bay Street are on course to open mostly flat.

TASI

12,128

-0.4% (YTD: +1.3%)

MSCI Tadawul 30

1,512

-0.4% (YTD: -2.5%)

NomuC

25,946

-0.4% (YTD: +5.8%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

6.5% repo

5.5% reverse repo

EGX30

30,998

-0.1% (YTD: +24.5%)

ADX

9,367

-0.1% (YTD: -2.2%)

DFM

4,365

-0.1% (YTD: +7.5%)

S&P 500

5,520

-0.2% (YTD: +15.7%)

FTSE 100

8,270

-0.4% (YTD: +6.9%)

Euro Stoxx 50

4,848

-1.3% (YTD: +7.2%)

Brent crude

USD 72.71

-1.4%

Natural gas (Nymex)

USD 2.1

-2.6%

Gold

USD 2,526

+0.1%

BTC

USD 57,669.71

-0.6% (YTD: +30.5%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.4% yesterday on turnover of SAR 7.5 bn. The index is up 1.3% YTD.

In the green: Sfico (+9.9%), Al Baha (+7.7%) and SSP (+5.9%).

In the red: Alistithmar Reit (-5.0%), Al Ahli Reit 1 (-3.3%) and Knowledge Economic City (-3.3%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.4% yesterday on turnover of SAR 32.8 mn. The index is up 5.8% YTD.

In the green: Al Ashghal Al Moysra (+8.2%), Leaf Global (+7.7%) and Al Naqool (+6.2%).

In the red: NGDC (-10.5%), Al Rashid Industrial (-6.1%) and Naba Al Saha (-5.0%)

CORPORATE ACTIONS-

#1- Riyadh Cables Group will distribute SAR 224.6 mn in dividends at SAR 1.5 per share for 1H 2024, it said in a disclosure to Tadawul.

#2- ASG Plastic Factory Co. will distribute SAR 3.9 mn in dividends at SAR 0.55 per share for 1H 2024, it said in a disclosure to Tadawul.

#3- Al Baha Investment and Development’s board withdrew its recommendation to list subsidiary Elegant Centers on Tadawul’s parallel market Nomu, according to a filing to the exchange. No further information was provided.

#4- The board of Al Baha Investment and Development has recommended a 26.5% capital reduction to SAR 218.3 mn to offset accumulated losses, it said in a disclosure to Tadawul.

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