Mideast Stocks: Gulf bourses retreat on lower oil prices, inflation fears

Mideast Stocks: Gulf bourses retreat on lower oil prices, inflation fears

Stock markets in the Gulf retreated on Wednesday, tracking crude prices, and as global sentiment was weighed by persistent worries that rising interest rates would trigger a global recession.

Saudi Arabia's benchmark index slid 2.9%, posting broad-based declines, dragged down by Al Rajhi Bank a 4.3% drop and a 2.9% decline in Saudi National Bank, the country's largest lender.

Oil prices, a key catalyst for the Gulf's financial markets, tumbled on news of a plan by U.S. President Joe Biden to cut fuel costs for drivers. The White House asked the chief executive officers of seven oil companies to a meeting this week to discuss ways to increase production capacity and reduce fuel prices of around $5 a gallon as they make record profits.

Dubai's main share index closed 0.9% lower, with blue-chip developer Emaar Properties losing 1.9%. In Abu Dhabi, equities declined 1.8%, with the United Arab Emirates' biggest lender First Abu Dhabi Bank retreating 2.5%.

The Qatari benchmark was down 1.1%, with petrochemical maker Industries Qatar dropping 2.5%.

U.S. Federal Reserve chair Jerome Powell is due to start his testimony to Congress on Wednesday, with investors looking for further clues about whether another 75-basis-point rate hike is on the cards in July.

Economists polled