Gold prices near 3-week lows as stronger dollar, trade progress weigh
Investing.com -- Major stock markets in the Gulf experienced a downturn in early trading on Tuesday due to investor concerns about a potential trade war impacting U.S. economic growth and possibly leading to a recession.
These fears were heightened after President Donald Trump, in an interview with Fox News, mentioned a "period of transition" and did not provide any predictions about whether his tariffs would lead to a U.S. recession.
The issue of tariffs has become a significant worry for investors, who believe they could negatively affect economic growth and cause inflation.
Signs of slowing U.S. economic growth have already emerged, with job growth in February falling below expectations. Investors are now eagerly waiting for the release of the Consumer Price Index report on Wednesday and the Producer Price Index data on Thursday. These reports are expected to provide some insight into the Federal Reserve’s upcoming decisions on interest rates.
The six-member Gulf Cooperation Council (GCC) usually aligns its monetary policy with the Federal Reserve’s decisions, as most regional currencies are pegged to the U.S. dollar.
In Saudi Arabia, the benchmark stock index fell by 1.3%, driven by a 1.6% decrease in Al Rajhi Bank and a 1.9% fall in Saudi National Bank, the largest lender in the country.
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