The Week Ahead - Regional Markets
The GCC equity markets may witness somewhat mixed sentiment. In light of the recent publication of a solid monthly jobs report, the expectation that the Federal Reserve will continue to hike rates aggressively should benefit GCC financials but raise concerns for sectors that are also sensitive to interest rates, such as real estate, which has just begun to show signs of recovery. Meanwhile, despite OPEC+'s decision to raise crude oil production in July and August by 648,000 barrels per day (bpd), rather than 432,000 bpd as planned earlier, firm crude oil prices, as well as the World Bank and Reuters forecasting high oil prices in the future, are expected to help calm markets.
