Global equity markets are likely to remain volatile going forward

Global equity markets are likely to remain volatile going forward

Global equity markets were marginally positive during the week, supported by economic surprises. However, investors appeared to be concerned about the resurgence in new COVID-19 cases and roll back in reopening measures, which are likely to have an impact on the pace of recovery observed during the past one month. Oil prices closed higher by 1.03% after an upward revision in its 2020 demand forecast by the International Energy Agency (IEA); however, gains were capped by the rising concern of resurgence in new cases.



For the MENA region, equity markets performed positively during the week, adding to the gains recorded in the previous week. For the week, 5 out of the 7 indexes closed in green, while Oman and Abu Dhabi closed in red with losses of 0.51% and 0.38%, respectively. Egypt was the best performing index in the region with gains of 1.79%, followed by 1.43% in Saudi Arabia, 1.00% in Dubai, 0.94% in Bahrain, and 0.33% in Kuwait.



Going forward, global equity markets are likely to remain volatile amid concerns of resurgence in new cases and the subsequent restrictions on business activity to curb the new cases. Investors will also closely monitor the upcoming second-quarter earnings, which should