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Geopolitical tensions are endangering the global growth outlook, Saudi Finance Minister Mohamed Al Jadaan said on Sunday at the World Economic Forum’s meetup in Riyadh. “Today, to me, geopolitical risks are possibly the number one risk as you look at the global economy,” he said, adding that “policymakers will need to be very agile in dealing with this,” as the threat of fragmentation and protectionism looms. “You need to make sure that you actually de-escalate,” he said, adding that the “region needs stability.”
The proof? Economies are growing at a rate that is “weak-by-historic standards,” IMF Managing Director Kristalina Georgieva said. She described a slowdown in global economic activities and “a significant divergence across the world” as two “very serious problems” that global decision makers ought to address. Georgieva said that while some countries are moving forward, others are “falling behind,” without providing further details. The IMF chief said states should implement reforms that are “mindful of the people,” as they become “transmission lines of prosperity,” when paired with health trade and financial flows.
On the other hand, artificial intelligence could potentially set the tone right for global growth: Saudi Economy and Planning Minister Faisal Alibrahim said that adopting AI technologies could see tns of USD poured into the global economy within the next decade as it ushers in new industries.
ALSO ON PLANET FINANCE- The rise of the reverse carry trade: The Federal Reserve’s tight grip on US interest rates has sent widely traded emerging market currencies into losses in 2024 — benchmark borrowing costs in several frontier and emerging markets currently sit below US policy rates. This has given rise to the so-called reverse carry trade, with investors borrowing in EM currencies and buying USD, producing returns of as much as 9% this year, writes Bloomberg.
MARKETS THIS MORNING-
Asian shares are up this morning, led by the Nikkei as trading in Japan resumed after yesterday’s holiday. Major Asian benchmarks were following Wall Street up — the Dow and S&P 500 closed up slightly yesterday, while the Nasdaq was basically flat. US and European equities futures were little changed overnight.
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ADX |
9.063 |
+0.2% (YTD: +-5.4%) |
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DFM |
4,161 |
+0.3% (YTD: +2.5%) |
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Nasdaq Dubai UAE20 |
3,573 |
+0.4% (YTD: -7.0%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.2% o/n |
5.5% 1 yr |
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TASI |
12,369 |
+1.1% (YTD: +3.4%) |
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EGX30 |
26,011 |
5.6% (YTD: +4.5%) |
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S&P 500 |
5,116 |
+0.3% (YTD: +7.3%) |
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FTSE 100 |
8,147 |
+0.1% (YTD: +5.4%) |
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Euro Stoxx 50 |
4,981 |
-0.5% (YTD: +10.2%) |
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Brent crude |
USD 88.52 |
-1.1% |
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Natural gas (Nymex) |
USD 2.03 |
+5.6% |
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Gold |
USD 2,357.70 |
+0.5% |
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BTC |
USD 62,945.20 |
-1.1% (YTD: +48.8%) |
THE CLOSING BELL-
The DFM rose 0.3% yesterday on turnover of AED 335.7 mn. The index is up 2.5% YTD.
In the green: Ithmaar Holding (+6.6%), Dubai Taxi Company (+3.4%) and Deyaar Development (+3.3%).
In the red: Emirates Reem Investments Company (-5.1%), Orascom Construction (-2.8%), and Islamic Arab Ins. Company (2.0%).
Over on the ADX, the index closed up 0.2% on turnover of AED 952.3 mn. Meanwhile, Nasdaq Dubai rose 0.4%.
CORPORATE ACTIONS-
Dubai National Ins. approved the distribution of a 10% dividend totaling AED 11.55 mn, Mubasher reports
