Dubai: With rising coronavirus infections in European sentiment in the European market last week, concerns about coronavirus revival cases will continue in investors’ minds in the coming days.
As analysts are warned about news of further constraints due to the increase in COVID-19 cases – warning that investors are not doing well in the coming week – stock markets are also likely to be driven by the coming quarterly earnings data.
“In the future, global market volatility will remain high due to the upcoming US elections and uncertainty over corporate earnings releases in the third quarter of 2020,” said Iyad Abu Hweij, managing director of Allied Investment Partners PJSC, said. “On top of that, the growing number of new business will also make investors nervous and cautious about the recovery and earnings ahead.”
So markets are likely to consolidate further as investors closely monitor earnings announcements, and the increase in COVID-19 cases worldwide, developments around the US election, along with China’s GDP data, which will also be on the radar this week .
European countries are reviving drives and closures amid the rise in new cases of coronavirus, leading to predictions of more destruction of demand in energy markets. India, which is on track to conquer the US with the world’s most COVID-19 infections, is experiencing a surge in cases in the coming weeks as it goes to its most important holiday season.
The volatility in September returns
The month of September was difficult for markets, and corrected itself after stocks rose the previous month in hopes of a looming global economic recovery to pre-pandemic levels. This has brought some volatility to markets, which analysts say will remain for some time to come.
There were also signs of a delay in a potential COVID-19 vaccine after pharmaceutical giant Pfizer said last week that the drugs it was developing with German BioNTech would probably only be available for emergencies until after the US presidential election. what’s going on. 3 November.
Furthermore, the oil price is lower amid the volatile trading seen last week. At the beginning of the pandemic, regulators took the right steps to stabilize prices, but analysts believe more needs to be done in terms of monetary stimulus, otherwise the energy sector could be further destroyed.
Oil worries plague UAE markets
UAE courses started this week in negative areas as investor confidence plagued the oil-dependent economies and their investors as uncertainties over oil prices plagued.
Dubai’s major equities index (DFM) fell 0.6 percent, while the Abu Dhabi benchmark (ADX) fell 0.2 percent. Last week, the DFM fell 1.3 percent, while the ADX rose 1.3 percent.
Analysts were looking at how the weakened global outlook for oil demand is expected to spur OPEC to reverse a planned easing of oil cuts in 2021. However, the GCC region’s largest stock exchange, Saudi Arabia, Tadawul, and Qatar’s Qatar index, rose 0.2 percent each.
Market confidence erupts
Both the Dubai and Abu Dhabi rates have tracked sentiments seen in markets worldwide. Confidence in the UAE has waned over the past few weeks after rising sharply in September and August, as did its peer-to-peer global stock markets.
After falling by about 4 percent in May, the DFM rose 6 percent in June, but up 0.5 percent in July. The larger profit in August, the DFM achieved by 9.8 percent in the month, but rose relatively only 1.2 percent in September.
The ADX decreased by 2 percent in May and increased by 3.5 percent in June, but by 0.2 percent in July. But the ADX rose 4.9 percent in August, but remained flat in September.
Source: Gulf News