Most Gulf stocks in red on regional tensions
Most major stock markets in the Gulf fell in early trade on Tuesday amid rising geopolitical tensions in the region, with the Saudi index on course to end a three-session winning streak.
Israeli air strikes on Gaza killed more than 300 people, Palestinian health authorities said, threatening a complete collapse of a two-month ceasefire as Israel vowed to use force to free its remaining hostages in the enclave.
Meanwhile, President Donald Trump’s vowed to continue the US assault on Yemen’s Houthis unless they ended their attacks on ships in the Red Sea.
Saudi Arabia’s benchmark index dropped 0.3 percent, weighed down by a 1.4 percent fall in Saudi Aramco as the oil behemoth traded ex-dividend.
Dubai’s main share index fell 0.5 percent, weighed down by a 1.1 percent drop in blue chip developer Emaar Properties and a 1 percent decrease in toll operator Salik.
German shares rise ahead
German shares led gains in Europe on Tuesday, ahead of a parliamentary vote on historic debt reforms that will enable massive borrowing to stimulate growth in the country.
The pan-European STOXX 600 was up 0.3 percent as of 0810 GMT, while Germany’s blue-chip index rose 0.7 percent.
Europe’s largest economy is set to vote on a 500-billion-euro ($546 billion) fund for infrastructure and to ease constitutionally-enshrined borrowing rules to allow higher spending on security.
Focus was also on the upcoming phone call between US President Donald Trump and Russian President Vladimir Putin as the US attempts to convince Moscow to accept a ceasefire proposal and move toward a more permanent end to the three-year conflict.
| Business Confidence | ||||
|---|---|---|---|---|
| Country | Last | Previous | Reference | Unit |
| Australia | -1 | 5 | Feb/25 | points |
| Brazil | 49.1 | 49.1 | Feb/25 | points |
| Canada | 55.3 | 47.1 | Feb/25 | points |
| China | 50.2 | 49.1 | Feb/25 | points |
| Euro Area | -0.74 | -0.92 | Feb/25 | points |
| France | 97.1 | 95.7 | Feb/25 | points |
| Germany | 85.2 | 85.2 | Feb/25 | points |
| India | 120 | 119 | Dec/24 | points |
| Indonesia | 12.46 | 14.4 | Dec/24 | points |
| Italy | 87 | 86.8 | Feb/25 | points |
| Japan | 14 | 13 | Dec/24 | points |
| Mexico | 50.4 | 51.6 | Feb/25 | points |
| Netherlands | -1.2 | -1.6 | Feb/25 | points |
| Russia | 3.3 | 4.2 | Feb/25 | points |
| Singapore | 16 | 10 | Dec/24 | points |
| South Africa | 45 | 45 | Mar/25 | points |
| South Korea | 65 | 63 | Feb/25 | points |
| Spain | -6.2 | -4.7 | Feb/25 | points |
| Switzerland | 102 | 103 | Feb/25 | points |
| Turkey | 102 | 101 | Feb/25 | points |
| United Kingdom | -47 | -24 | Mar/25 | points |
| United States | 50.3 | 50.9 | Feb/25 | points |
Australia stocks end marginally higher
Australian shares ended marginally higher on Tuesday, as real estate and commodity stocks rose while banks declined after a cautious stance by the country’s central bank poured water on prospects of more rate cuts.
The S&P/ASX 200 benchmark index closed 0.1 percent up at 7,860.40 points, after having risen as much as 0.9 percent early in the session.
Real estate stocks rose 0.7 percent, with Goodman Group gaining 1.1 percent.
“There is likely some positioning occurring in real estate stocks ahead of anticipated lower mortgage rates in the backend of the year,” said Tim Waterer, chief market analyst at KCM Trade Global.
Mining stocks rose 0.3 percent, as gold miners soared after gold prices hit a record high after investors were driven towards safe-haven assets amid rising global trade tensions and volatility in global markets.
Japan’s Nikkei rises to track wall street
Japan’s Nikkei share average rose more than 1 percent on Tuesday, tracking Wall Street’s overnight gains, with trading firms leading the gains.
By 0019 GMT, the Nikkei index was up 1.3 percent at 37,891.30 and the broader Topix rose 1.3 percent to 2,783.39.
US stocks gained for a second straight session on Monday as investors sought bargains after Nasdaq’s and the S&P 500’s four-week tumble and assessed the latest economic data to gauge the impact of the Trump administration’s policies.
In Japan, trading firms jumped after Warren Buffett’s Berkshire Hathaway raised its holdings in five Japanese trading houses.
Mitsui & Co jumped 4.9 percent and Mitsubishi Corp climbed 4.5 percent. Uniqlo-owner Fast Retailing rose 1.5 percent to give the biggest boost to the Nikkei.
Indian stocks may open higher
India’s benchmark indexes are likely to open higher on Tuesday, tracking their Asian peers on optimism over China’s economy.
The GIFT Nifty futures were at 22,741 as of 08:19 a.m. IST, indicating that the blue-chip Nifty 50 will likely open above Monday’s close of 22,508.75.
China’s retail sales growth accelerated in January-February in relief for policymakers attempting to revive domestic consumption.
Major Asian markets advanced in early trade, with the MSCI Asia ex Japan rising about 1 percent, amid positive data.
Meanwhile, softer-than-expected retail sales and factory activity figures kept downward pressure on the U.S. dollar, while Wall Street equities closed higher overnight.
However, caution will likely prevail back home due to the looming tariffs, the US Federal Reserve’s interest rate decision on Wednesday and geopolitical risks.
While the Fed is expected to keep key rates unchanged, the focus will be on the central bank’s projections on future rate cuts, growth and inflation expectations as risks of trade war rise, said two analysts.
Hong Kong stocks and Kiwi rise on China viewpoint
Hong Kong shares rose to three-year highs and led Asian markets higher on Tuesday, as investors turn positive on the outlook for the world’s second-biggest economy and cheered recent data and promises to further support consumption.
The Hang Seng was up 2 percent in morning trade and its 23 percent year-to-date gain is easily the largest of any major market.
Short sellers rushed to cover bets against the New Zealand dollar , which is sensitive to China’s consumer via food exports, sending it to a three-month high of $0.5827.
The China-sensitive Australian dollar hit a one-month high just shy of $0.64 and China’s yuan hovered near its strongest levels of the year so far.
On Monday the OECD forecast U.S. President Donald Trump’s higher tariffs will drag down growth in Canada, Mexico and the U.S. while driving up inflation.
Yet China has been an unlikely winner of Trump’s burst of tariffs and cuts to government spending in his first two months in office, as fears of a U.S. slowdown turn investors abroad.
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