The global markets witnessed several disturbances in the trading at the beginning of the week, which began with the collapse of the shares of European banks, the decline in oil prices and the decline of the Gulf stock exchanges, due to the banking crisis that the world is going through.
European bank stocks fell, on Monday, despite the announcement that the Swiss bank, UBS, had acquired Credit Suisse to avert a global banking crisis.
In Asia, the Japanese Nikkei index closed at its lowest level in two months, Monday, as fears of a recession and a possible crisis in the global banking sector led to the sale of risky assets, according to Reuters.
Most Gulf stock markets fell in early trading on Monday, tracking the impact of lower global markets and oil prices on fears that risks to the global banking sector would lead to an economic recession and lower demand for fuel.
The crisis in Europe
Agence France-Presse indicated that the Euro Stoxx 600 banking index fell by more than 5 percent in morning trading, with the collapse of the giant French banks BNP Paribas and Societe Generale by about 7 percent, German Deutsche Bank by more than 9 percent, and British Standard Chartered by about 5 percent. percent.
The most prominent index in the London Stock Exchange fell by 1.1 percent. In the euro zone, the Frankfurt Stock Exchange index fell 1 percent and the Paris Stock Exchange index fell by 0.8 percent.
European stocks fell on Monday, with Credit Suisse shares losing more than 60 percent after UBS agreed to buy struggling rival in a $3 billion deal, implying Credit Suisse’s value well below its market value and raising fears Widespread banking crisis, according to Reuters
The Stoxx 600 index of European shares fell 0.8 percent by 08:07 GMT, after recording the largest weekly loss during the current year last Friday.
Standard Chartered shares fell to the bottom of the Financial Times 350 index, recording a loss of 7.7 percent, while Natwest and Barclays shares fell 7.8 percent and 7.4 percent, respectively, according to Reuters.
Turmoil in the Gulf stock exchanges
The National Bank of Saudi Arabia, the main shareholder in the “Credit Suisse” bank, hastened to announce, on Monday, that the change in the value of its investment “will not affect” its profits and financial plans for the year 2023.
In parallel, most of the Gulf stock markets declined in early trading, Monday.
Crude oil prices, a catalyst for financial markets in the Gulf region, fell 3.2 percent, with Brent crude reaching $70.58 a barrel by 07:15 GMT.
In Abu Dhabi, the main market index fell 1.4 percent, affected by a 2.6 percent decline in the International Holding Company and a 1.4 percent drop in Alpha Abu Dhabi.
First Abu Dhabi Bank, the emirate’s largest bank by assets, fell 0.6 percent, and Abu Dhabi Commercial Bank lost 3.1 percent.
In Dubai, the index fell 0.5 percent in early trading, affected by losses in the industrial and financial services sectors, with Salik, a road toll collector, falling 1.8 percent.
Deyaar real estate development fell 1.3 percent, and Emaar real estate development fell 1.5 percent. Emirates NBD, the emirate’s largest bank, lost 0.8 percent.
In Qatar, the index fell 0.3 percent, with losses in most sectors, led by the industrial and financial services sectors. Industries Qatar Group fell 1.1 percent, and Qatar Aluminum fell 1.9 percent. Qatar National Bank fell 0.3 percent, and Commercial Bank fell 1.8 percent.
The Saudi index fell 0.5 percent, affected by losses in the financial services, raw materials and energy sectors, with the loss of the share of Al-Rajhi Bank, the largest Islamic bank in the world in terms of assets, by 0.6 percent, and the decline in the share of Al-Ahli Bank of Saudi Arabia, the largest commercial bank in the Kingdom, by 1.8 percent.
Bucking the trend, the perfect offer for commercial services rose 2.7 percent after the communications and information technology services company reported a 63 percent jump in net profit for the full year.
Falling oil prices
Reuters reported that oil prices fell, on Monday, to their lowest level in 15 months, amid fears that the global banking sector turmoil may lead to a recession that would lead to a decline in oil demand, as well as fears of a possible hike in interest rates in the United States this week. .
Brent crude futures for May settlement fell $2.32, or 3.2 percent, to $70.65 a barrel by 07:10 GMT. And contracts fell earlier to $ 70.56 a barrel, the lowest level since December 2021.
safe haven “shine”
Gold prices jumped 1 percent, reaching their highest levels since March of last year, on Monday, and compensated for part of the losses it recorded earlier.
Spot gold rose 1 percent to $2,007.3 an ounce by 07:47 GMT, after falling 1 percent earlier in the session. US gold futures jumped 2 percent to 2012.5 dollars.
Gold prices increased ten percent, or about $180, due to the high demand for it as a safe haven after the collapse of the US Silicon Valley Bank earlier this month, which in turn caused a crisis for Credit Suisse, which was founded 167 years ago.
There was little change in the spot silver price at $22.59 an ounce, while platinum lost 0.5 percent to $970.53, and palladium fell 0.8 percent to $1,407.70.
