Gulf stock markets has seen a fall on Sunday as the investors responded to the statement made by the Federal Reserve Chair, Jerome Powell indicating that the U.S. economy now needs to have a strict monetary policy for some time to control the current inflation.
Consequently, the stock market investors are worried about the terrible outcome amid this harsh policy from U.S. Federal chief. The Saudi Aramco, an oil company (2222.SE) saw 1.7% slowdown which can cut the oil demand.
Accordingly, Saudi Arabia’s benchmark index (.TASI) fell to 0.5% in the market, Qatar’s (.QSI) dropped to 0.4% and Egypt’s index (.EGX30) went down to 1.1% in stock market. Bahrain (.BAX) also saw a fall up to 0.1% and Kuwait’s (.BKP) dropped to 0.9% .
Most of the Gulf Cooperation Council countries have secured their currencies to dollar. Due to this, they follow the Fed’s policies, which will now have a direct impact on the monetary tightening there.
