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Impact of Inflation Data on Stock Markets

Impact of Inflation Data on Stock Markets: Inflation data shapes financial market movements,
directly influencing central bank decisions, investor sentiment, and asset prices.
Following the latest U.S. inflation data release,
stock markets experienced significant volatility,
with better-than-expected figures helping markets recover after heavy losses.

In this article, we analyze the impact of recent inflation data on global markets,
focusing on Asian and U.S. stock movements, bond and currency performance,
and expectations regarding the Federal Reserve’s upcoming decisions.
Will the upward trend continue, or does uncertainty still dominate the markets? Keep reading for the full analysis.

 

Contents

Asian Stocks

Ongoing Market Uncertainty

U.S. Inflation Data and Its Impact

Focus on Producer Price Index Report

Concerns Over Tariffs

Global Market Outlook

The Federal Reserve

Future Market Projections

 

 

 

 

 

Asian Stocks Rise on U.S. Inflation Data

Asian stocks climbed on Thursday after better-than-expected
U.S. inflation data helped Wall Street recover after two days of significant losses.

Japan and South Korea indices posted gains, while Hong Kong
and China markets showed mixed results.
U.S. stock futures also rose in early Asian trading, reinforcing gains from the previous session.

Despite Wednesday’s rally in the S&P 500 and Nasdaq 100
Both indices remain down more than 3% this week, marking their first gains since Friday.

Meanwhile, U.S. government bonds showed slight stability on Thursday,
with minimal movement following the inflation report.
The 10-year Treasury yield increased by three basis points to 4.3%,
while the 2-year yield rose by four basis points.
Major currencies fluctuated within narrow ranges,
and the U.S. dollar index mainly remained stable.

 

Ongoing Market Uncertainty

The lack of a strong market reaction to the inflation data highlights
the persistent uncertainty driven by economic policies.

Christina Woon, a portfolio manager at Eastspring Investments, told Bloomberg TV:
 “There is a constant flow of economic news from the U.S. and China,
creating significant volatility. While the U.S. economy was
a strong bet earlier this year, recent trends suggest a shift in favor of Asian markets, particularly China.”

 

U.S. Inflation Data and Its Impact

The U.S. Consumer Price Index (CPI), including a core measure
that excludes food and energy prices, rose 0.2% in February, below the expected 0.3% increase.

According to analysts at TD Securities, while the data presents positive signals,
it does not fully eliminate uncertainty, as inflation expectations remain
unclear due to ongoing political and economic developments. They added:
 “It is unlikely that the Federal Reserve will adjust its monetary policy based on this data alone.”

 

Focus on Producer Price Index Report

Markets are now looking forward to the U.S. Producer Price Index (PPI) report,
set to be released later on Thursday.
This report will provide further insights into inflationary pressures
influencing the Federal Reserve’s decision-making.

 

Concerns Over Tariffs

On Wednesday, President Donald Trump reaffirmed that the U.S.
would respond to European countermeasures against newly imposed 25% tariffs on steel and aluminum,
increasing fears of further trade tensions.

Additionally, in response to the U.S. trade measures,
Canada announced 25% tariffs on approximately $20.8 billion
of U.S. goods, including steel and aluminum.

 

 

 

 

Global Market Outlook

Investors are closely watching upcoming economic data,
including consumer confidence in Thailand, industrial output in Hong Kong,
and India’s trade figures, which could be released anytime before March 17.
Additionally, China’s money supply data is expected by March 15.

In the technology sector, strong gains in U.S. equities supported significant tech stocks,
with the “Magnificent Seven“ (Apple, Nvidia, Amazon, Alphabet, Meta, Microsoft, Tesla)
climbing 2.3%, marking their best day since January.

Meanwhile, Intel announced a new CEO,
while Adobe issued weaker-than-expected business forecasts, impacting its stock performance.

 

Federal Reserve Watch

Despite lower-than-expected inflation data,
markets remain cautious regarding the Federal Reserve’s next move.
Analysts believe the central bank is unlikely to cut interest rates soon.

Jeff Schulze, an investment strategist at ClearBridge Investments, stated:
“While this data gives the Fed more breathing room,
future decisions will primarily depend on labor market conditions and inflation control.”

Some analysts still anticipate an interest rate cut in June,
with traders pricing an estimated 70 basis points of rate reductions throughout 2025.

 

Future Market Projections

According to BlackRock analysts, the Federal Reserve will likely
maintain a cautious monetary policy approach over the coming months,
closely monitoring developments in the U.S. economy and ongoing trade tensions.

Ultimately, investors remain cautious amid market fluctuations,
awaiting key economic data that could soon shape central bank policies and market directions.

 

Impact of Inflation Data on Stock Markets

Stocks Hover as Traders Brace for Swings

Stocks Hover as Traders Brace for Swings: Global markets started the week cautiously as traders prepared for September, a challenging month for stocks.
With record highs hovering in the background, investors are bracing for potential volatility driven by economic data,
geopolitical concerns, and central bank actions.
In this market wrap, we explore the critical movements in global equities, currencies, commodities,
and the anticipated economic events that could shape the financial landscape in the coming days.

 

Content

European Market Highlights

Historical Trends and Market Sentiment

Economic Data and Rate Cut Expectations

Caution from JPMorgan Strategists

Currency Market Dynamics

Asian Market Concerns

Commodities Outlook

Summary of Key Market Movements

Conclusion

 

 

 

European Market Highlights

European stocks showed resilience on Monday, with the Stoxx 600 index recovering from earlier losses to remain near record highs.
Volkswagen AG saw a 1.3% rise following news of potential factory closures in Germany,
highlighting the ongoing adjustments in the manufacturing sector.

Meanwhile, Rightmove Plc surged 27% in London after Rupert Murdoch’s REA Group Ltd expressed takeover interest,
showcasing the dynamic nature of corporate activity within the region.

 

 

Historical Trends and Market Sentiment

September has traditionally been a difficult month for stocks,
a pattern that has persisted over the past four years.
Wall Street’s Cboe Volatility Index (VIX) has consistently risen each September since 2021,
signaling heightened market fear.
The upcoming US jobs report, scheduled for Friday,
is expected to be crucial in shaping expectations regarding
Federal Reserve rate cuts and the broader economic outlook.

 

Economic Data and Rate Cut Expectations

With the US election campaign gaining momentum,
traders increasingly focus on the Federal Reserve’s policy path.
Current market pricing suggests a one-in-four chance of a 50 basis-point cut in interest rates this month.
Fiona Boal, global head of equities at S&P Dow Jones Indices,
noted that while a rate cut is expected,
the markets will soon pivot to political concerns as the election draws nearer.

 

 

 

Caution from JPMorgan Strategists

JPMorgan Chase & Co. strategists warned that any equity rally could be short-lived even if the Fed pursues a rate cut.
Mislav Matejka and his team pointed out that easing policies might reflect slowing economic growth,
compounded by seasonal challenges typical of September.
The strategists emphasized a preference for defensive sectors amidst ongoing uncertainties.

 

Currency Market Dynamics

Currency movements reflected broader market anxieties.
The US dollar showed signs of recovery,
with strategists like Valentin Marinov from Credit Agricole CIB cautioning that markets
might be overly dovish ahead of the September Fed meeting.
Marinov suggested that the dollar could gain ground
if the Fed adopts a more cautious approach than currently anticipated.

 

Asian Market Concerns

In Asia, equities retreated amid growing fears over China’s economic health.
Persistent weakness in the property market is weighing on domestic demand,
posing a significant challenge for the region.
Hao Hong, chief economist at Grow Investment Group,
emphasized the need for more government intervention to stabilize the situation.

 

Commodities Outlook

In commodities, oil prices fluctuated as traders weighed conflicting signals,
including an upcoming production increase from OPEC+,
economic headwinds in China, and reduced output in Libya.
Gold prices saw minor declines, reflecting broader market hesitancy.

 

Summary of Key Market Movements

Stocks:

S&P 500 futures: Little changed

Nasdaq 100 futures: +0.1%

Currencies:

Euro: +0.2%

British Pound: +0.2% to $1.3147

Japanese Yen: -0.5%

Cryptocurrencies

Bitcoin: Stable at $58,433.79

Ether: +0.8%

Commodities:

WTI Crude: +0.7% to $74.04 a barrel

Spot Gold: -0.2% to $2,499.51 an ounce

 

Conclusion

As markets continue to navigate this complex landscape,
traders remain on high alert for any signals that could prompt significant shifts in sentiment.
The coming weeks promise opportunities and risks
as the global financial community adjusts to the ever-evolving economic environment.

 

Stocks Hover as Traders Brace for Swings

Impact of Technology on Stock Markets Nvidia Leads a Dramatic Selloff

Impact of Technology on Stock Markets Nvidia Leads a Dramatic Selloff: Recent developments in the stock market have highlighted the profound impact of technology companies,
particularly Nvidia, which has faced a significant downturn.
This analysis explores the cascading effects of such shifts in tech stocks on broader market indices and investor sentiment.

 

Content
Nvidia’s Sizable Impact
Market Dynamics and Sector Performances
Investor Sentiment and Market Forecasts
Interest Rates and Cryptocurrency Fluctuations
Expectations and Strategic Recommendations
Long-Term Market Outlook
Conclusion

 

 

 

Nvidia’s Sizable Impact

Nvidia Corp. experienced a sharp decline in value, losing approximately $430 billion.
This considerable drop has spurred discussions about the sustainability of the recent industry rally that has significantly contributed to the bull market’s strength.
Despite this setback, Nvidia remains a leading figure in the artificial intelligence
sector and is currently the second-best performer in the S&P 500 this year, following Super Micro Computer Inc.

 

Market Dynamics and Sector Performances

While tech stocks like Nvidia faced downturns, other sectors showed resilience and growth.
The S&P 500 dipped below 5,450 points as energy and financial sectors gained, contrasting the tech retreat.
Conversely, the Nasdaq 100 dropped over 1% after recently hitting the 20,000 milestone.
Notably, the Dow Jones Industrial Average outperformed its counterparts during this period.

 

Investor Sentiment and Market Forecasts

Market analysts have expressed concerns over the potential for further declines.
Binky Chadha from Deutsche Bank and Lori Calvasina from RBC Capital Markets have suggested that U.S. equities might temporarily halt,
with potential downside risks if the current market optimism is overstated.
Jonathan Krinsky of BTIG highlighted worries about a near-term unwinding of stocks that had led to gains earlier in the year.

 

Interest Rates and Cryptocurrency Fluctuations

Financial instruments like U.S. Treasury bonds and cryptocurrencies also experienced shifts like stock market movements.
The yield on ten-year Treasury bonds fell slightly, and Bitcoin dropped below $60,000,
reflecting a broader cooling in demand for cryptocurrencies and ongoing uncertainty regarding monetary policies.

 

 

 

 

 

Expectations and Strategic Recommendations

The latest MLIV Pulse survey indicates that many investors plan to reduce their equity holdings shortly,
expecting a market correction by year-end.
Experts like Matt Maley from Miller Tabak and Marko Kolanovic from JPMorgan Chase & Co. have
pointed out the potential repercussions of continued weaknesses
in major tech stocks and the importance of sticking to high-quality, defensive equities.

 

Long-Term Market Outlook

Despite the current market turbulence, strategists from Morgan Stanley, led by Mike Wilson,
maintain that the stock market is not in a bubble.
They argue that the market focuses more on softening economic growth than inflation and interest rates.
Emily Bowersock Hill from Bowersock Capital Partners acknowledges Nvidia’s high valuation
but remains optimistic about the potential of AI, suggesting that the sector could yield significant returns for leading companies.

 

Conclusion

As the stock market navigates through these complex dynamics,
the focus remains on how technology stocks like Nvidia will influence future market trends.
The outcomes of upcoming corporate earnings reports,
especially from tech giants, will be crucial in shaping investor confidence and market trajectories in the coming months.

 

 

Impact of Technology on Stock Markets Nvidia Leads a Dramatic Selloff

Stock Markets Are at Record Highs Around the World

Stock Markets Are at Record Highs Around the World: From New York to London to Tokyo, if there’s one similarity among the world’s equity stock markets,
it’s this: record highs.
Fourteen of the world’s 20 largest stock markets have recently reached all-time highs.

 

Contents

Record Highs

Supporting Conditions

Global Stocks Pullback
Major Equity Markets

Enthusiasm for AI Technology

Dow Jones Achievement

Europe’s Corporate Earnings Outperformance
 European Stock Index

Commodities Supporting Stock Prices

Japan’s Return

 

 

 

 

Record Highs

The MSCI ACWI Index tracks developed and emerging markets and reached a new high last Friday.
In the United States, the S&P 500 and Nasdaq 100 indexes hit record highs this week,
while the Dow Jones Industrial Average surpassed 40,000 points for the first time.
Meanwhile, the largest stock exchanges in Europe, Canada, Brazil, India, Japan, and Australia, are currently at or near their peak values.

 

Supporting Conditions

Imminent interest rate cuts, strong economies, and corporate earnings drive this activity.
Additionally, there are many potential drivers to keep the rally going, such as $6 trillion in money market funds, with risks remaining scarce.
Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, said,
“From a macro perspective, there are no red signals.”
He recommends buying global equities in his multi-asset portfolios, adding,
“The cyclical picture remains strong, and the rally is broadening out.”

 

Global Stocks Pullback

The pullback in global stocks in April was short-lived, as buyers consistently appeared at lower prices.
This helps explain why the S&P 500 hasn’t seen a 2% drop in 311 days, its longest streak since 2017-2018.
Even Chinese equities, which have been struggling since reaching their peak in February 2021, are starting to recover.

 

 

 

 

Major Equity Markets

The S&P 500 has set 24 new all-time highs in 2024 after two years of stagnation,
as US stocks have added $12 trillion in market value since late October.
Part of this is due to hopes for a soft landing with the economy staying strong while inflation cools,
spurring bets that the Federal Reserve will ease monetary policy later this year.

 

Enthusiasm for AI Technology

Another part is enthusiasm for AI technology. AI chip giant Nvidia alone is responsible for
about a quarter of the S&P 500’s gains. Along with contributions from Microsoft, Amazon, Meta, and Alphabet,
these five companies account for 53% of the index’s rise.

 

Dow Jones Achievement

Dave Mazza, CEO of Roundhill Investments, noted that the new milestone for the Dow Jones this week
is the more significant development since it is less influenced by the big tech behemoths.
He said, “While the tech sector’s strength has been incredibly important in driving markets to record highs,
it’s not the only sector doing well.” He added, “While some pointed to the
market being too concentrated last year, you can’t say the same in 2024.”

 

Europe’s Corporate Earnings Outperformance

European stocks are also hitting record highs, supported by economic data showing signs of bottoming amid positive surprises this year.
This boosts corporate profits and drives higher market expectations.
BNP Paribas strategists led by Georges Debbas said,
“The expected sluggish earnings season turned out to be better than feared,”
Notably, three-quarters of European companies met or exceeded earnings expectations,
with margins improving. This boosts analysts’ estimates for future profits, lifting stocks higher.

 

 

 

 

European Stock Index

The pan-European Stoxx 600 Index has risen in five of the last six months,
with the divergence in monetary policy from the US likely to support the region’s equities.
The European Central Bank has taken a more dovish tone than the Federal Reserve in recent months,
and bond markets expect the ECB to cut rates before its US counterpart for the first time.

 

Commodities Supporting Stock Prices

The UK’s FTSE 100 Index has outperformed the Euro Stoxx 50 in dollar terms over the past three months,
recovering much of its underperformance from the beginning of the year.
Soaring commodity prices have been a key driver, helping one of the cheapest developed equity markets in the world start to catch up to its rivals.

The economically sensitive commodities sector has also pushed Canada’s main stock benchmark,
the S&P/TSX Composite Index, to an all-time high.
Gold and copper have repeatedly set records this year,
boosting the country’s massive mining sector, which accounts for over 12% of the index’s weighting.
In a note, Bloomberg Intelligence analysts Gillian Wolff and Gina Martin Adams wrote,
“Precious metal prices are closing in on decade highs set just a few weeks ago,
which could keep the Canadian index supported for now, though a reversal could spell trouble.”

 

Japan’s Return

Japan’s Nikkei 225 is up 16% this year, adding to a 28% gain last year.
The country lured investors and drove gains through a campaign to improve shareholder returns,
a weak yen, and the end of negative rates in Japan.

BlackRock Inc. Strategists said the sliding yen could put off foreign investors.
However, they also think the outlook is good over the long term due to corporate reforms, domestic investments, and wage growth.

Meanwhile, Australia’s S&P/ASX 200 Index hit a high on March 28 after inflation data
bolstered bets that rates have peaked.

Since then, expectations have shifted,
with a former central bank official predicting that cuts may only come in late 2025.
Yet, Australian stocks are back to hovering near that record high.

 

 

 Stock Markets Are at Record Highs Around the World

J.P. Morgan and its European interest rate expectations amid concerns about a return of inflation

J.P. Morgan and its European interest rate expectations amid concerns about a return of inflation: In a memo outlining the predictions of the American investment bank
J.P. Morgan regarding the possible timing and extent of European interest rate cuts,
the European Central Bank is expected to take a tightening path to combat high inflation.
J.P. Morgan experts anticipate that policymakers at the European Central Bank will begin
the path of interest rate cuts early in the current year of 2024, surpassing previous expectations.

 

Topic

detail

Conclusion

 

 

 

 

 

detail

  • J.P. Morgan experts expect monetary policymakers to start reducing interest rates starting from June of the upcoming year, contrary to earlier expectations pointing to September.
  • Economists at J.P. Morgan suggest that the magnitude that monetary policymakers at the European Central Bank may adopt will be 100 basis points, contrary to previous expectations of only a 75 basis points reduction.
  • It is possible that the reduction in European interest rates will begin in July, September, October, and December of the current year.
  • Economists at J.P. Morgan are concerned about the slowdown in the decline of European inflation, which may leave us uncertain about the current inflation trajectory.
  • The bank’s experts believe that the recent increase in wages may add to inflationary pressures, reinforcing concerns about the inflation trajectory and potentially redirecting it upward.
  • A warning from J.P. Morgan economists suggests that geopolitical tensions in the Red Sea, coupled with increasing pressures on shipping companies, may push inflation in a positive direction.
  • It is worth mentioning that the current situation of the Euro is good and has witnessed positive movements in the previous period of the ended year.

 

 

Conclusion

Taking into consideration the European Central Bank’s early interest rate cuts during the current year,
with expectations of an increased reduction, may contribute to a renewed downward trend for the Euro,
potentially increasing negativity. Conversely,
a longer duration of interest rate retention and a decrease in the magnitude
of the reduction may contribute to the continued positivity of the Euro.

 

 

J.P. Morgan and its European interest rate expectations

 

Global markets and market news

Global markets and market news

 

Asian stocks on the brink due to China data,

Asian stocks began the week on a cautious note as investors brace for the release of industrial

and retail data from China while awaiting a group of Federal Reserve officials

to speak to gauge market pricing for rate cuts this year.

 

topics

Market News

US Markets

 

 

 

 

 

 

Market News

 

Futures for the S&P 500 and Nasdaq declined 0.1% in early trading,

following a report released on Friday that showed US consumer confidence

fell to its lowest level in six months in May,

while long-term inflation expectations jumped to their highest level since 2011,

boosting the US dollar and treasury yields.

 

In emerging markets, the Turkish lira dropped to its lowest level in two months

as the weekend election appeared headed for a run-off,

while the Thai baht rose by almost 1% after the Thai opposition defeated parties aligned

with the military in weekend elections.

 

On Monday, the MSCI’s broadest index of Asia-Pacific shares outside Japan

(MIAPJ0000PUS) fluctuated between gains and losses,

last up 0.1%. Japan’s Nikkei index (N225) bucked the trend with a 0.5% gain,

buoyed by last week’s optimism during the earnings season.

 

The benchmark Chinese stocks index (CSI300) was steady in early trading, after sliding 2% last week,

while Hong Kong’s Hang Seng index (.HSI) gained 0.3% after also suffering a 2.1% hit.

 

The country’s central bank rolled over medium-term policy loans due on Monday,

keeping interest rates unchanged despite disappointing data

last week that fueled concerns about a global slowdown.

 

China is set to release monthly industrial production, retail sales,

and fixed-asset investment data on Tuesday.

 

Chris Weston, head of research at Pepperstone, said,

“The huge improvement on a year-on-year basis should not come as a surprise given

it’s measured against a weak economy that was in lockdown.”

Weston added, “However, with recent China data having raised some concerns

we saw import weakness, producer price index,

and loan data – China’s growth is central to market moves.”

 

 

 

 

 

 

 

 

 

 

 

US Markets

 

This week also sees several Federal Reserve officials speaking,

with Chairman Jerome Powell being appointed on Friday which could generate plenty

of headlines to move communication further.

 

Markets still see this as the peak for US rates and Federal funds rates at 70 basis points

in cuts by the end of the year after data on the consumer price index and

producer price index last week supported the Fed’s temporary pause

in rate hikes due to inflation slowdown.

 

Federal Reserve Bank of Boston President Eric Rosengren said on Friday

that the US central bank might need to raise interest rates further if inflation remains high.

 

Joseph Capurso, head of international economics at the Commonwealth Bank of Australia,

believes continued inflation in the US will impact pricing on the near-term cuts

on the fund’s rate and contribute to the US dollar’s recovery in the coming months.

 

The US dollar hovered around a five-week high against major currencies on Monday,

extending its best weekly gain since September from the previous week.

It was last trading at 102.64, after rising 1.4% last week on global growth concerns.

 

There was a lot on investors’ minds with uncertainty surrounding the US debt ceiling and

the return of banking concerns. US President Joe Biden is expected to meet with

congressional leaders on Tuesday to hold talks on raising

the country’s debt limit and avoid a catastrophic default.

 

Fears of the US Congress not raising the debt ceiling on time led to significant distortions

at the short end of the yield curve as investors avoid maturing debt

when the Treasury runs the risk of running out of money

and flock to alternative issuances.

 

The yield on the 10-year benchmark bonds has only slightly changed at 3.4588% after

increasing by 6 basis points on Friday,

while the 2-year yields dropped by 2 basis points to 3.9830% after

also jumping by 10 basis points in the previous session.

 

Oil prices have declined for the fourth consecutive session.

US crude futures fell by 0.5% to $69.71 per barrel,

while Brent crude futures dropped by 0.6% to $73.74 per barrel.

Gold prices rose by 0.2% to reach $2,014.95 per ounce.

 

 

article name Global markets and market news

How to invest in Al Rajhi Bank stock

How to invest in Al Rajhi Bank stock at 0% commission

 

Al Rajhi Bank is a Saudi Arabian Islamic bank that has been in operation for over 70 years.

It is the largest Islamic bank in the world by assets and market capitalization,

with a market capitalization of over SAR 185 billion (approximately USD 50 billion) as of May 2023.

The bank provides a wide range of financial services to its customers,

including retail banking, corporate banking, investment banking, and asset management services.

In this article, we will discuss the reasons why investing in Al Rajhi Bank stock may be a good idea.

 

topics 

Strong Financial Performance

Growth Potential

Competitive Advantage

Dividend Yield

Valuation

Risk Management

Conclusion

 

 

 

 

Strong Financial Performance

Al Rajhi Bank has a strong track record of financial performance,

with consistently high profits over the years.

In 2022, the bank reported a net profit of SAR 10.36 billion, an increase of 6.5% from the previous year.

The bank’s total assets increased by 4.3% to reach SAR 494 billion in 2022.

The bank also has a low non-performing loan ratio of 0.9%,

which is a sign of its strong credit quality and risk management.

 

 

Growth Potential

Saudi Arabia’s economy is one of the fastest-growing economies in the world,

and Al Rajhi Bank is well-positioned to benefit from this growth.

The bank has a strong presence in the country and has been expanding its operations in recent years. In 2022, the bank opened 40 new branches, bringing its total number of branches to 587.

The bank also has a growing presence in other countries in the Middle East and Southeast Asia.

 

 

Competitive Advantage

As the largest Islamic bank in the world, Al Rajhi Bank has a competitive advantage over its peers.

The bank has a strong brand, a wide range of products and services, and a large customer base.

The bank’s Islamic finance expertise is also a key differentiator,

as it allows the bank to cater to the growing demand for Shariah-compliant financial products.

 

 

 

 

 

 

 

 

 

 

Dividend Yield

Al Rajhi Bank has a strong dividend yield,

which makes it an attractive investment for income-oriented investors.

In 2022, the bank paid a total dividend of SAR 3.07 billion,

which represents a dividend yield of approximately 3.5%.

The bank has a track record of paying consistent and increasing dividends over the years,

which is a sign of its financial strength and stability.

 

 

 

Valuation

Al Rajhi Bank’s stock is currently trading at a price-to-earnings (P/E) ratio of around 13,

which is lower than the average P/E ratio of the Saudi Arabian market.

This suggests that the bank’s stock is undervalued and has room for growth.

The bank’s price-to-book (P/B) ratio is also lower than the average P/B ratio of the Saudi Arabian market,

which indicates that the bank’s stock is attractively priced relative to its book value.

 

 

 

Risk Management

Al Rajhi Bank has a strong risk management framework,

which is reflected in its low non-performing loan ratio and high capital adequacy ratio.

The bank’s Tier 1 capital adequacy ratio stood at 19.1% in 2022,

which is well above the regulatory requirement of 8%.

This indicates that the bank has a strong buffer against potential credit losses and

is well-positioned to weather any economic downturns.

 

article name How to invest in Al Rajhi Bank stock 

 

 

 

 

 

 

Risk Management

In conclusion, investing in Al Rajhi Bank stock can be a good idea for investors

who are looking for exposure to the Saudi Arabian market and the Islamic finance industry.

The bank has a strong track record of financial performance, growth potential,

competitive advantage, strong dividend yield, attractive valuation, and robust risk management.

However, investors should always conduct their own research and

due diligence before making any investment decisions.

it’s important to have a long-term perspective and

be prepared to weather any short-term volatility in the market.

 

Are you interested in the United Arab Emirates’ local stocks?

Check our Article on how to invest in the best Gulf stocks at 0% commission.

 

article name How to invest in Al Rajhi Bank stock 

Stocks consolidate their gains

Stocks consolidate their gains

for a second day and rise before the midterm elections in the United States.

 

In the United States, American stocks recorded a broad rise,
which also included the shares of small and large companies,
and this came before the midterm elections,
as well as inflation figures that will be announced later this week,

 

topıcs

collective hikes

A big jump in China’s oil imports in five months.

Lamborghini prepares for their IPO.

 

 

 

 

 

 

collective hikes

At a time when the prices of the US dollar and treasury bonds declined,
while the “Standard & Poor’s 500″ index closed near its highest levels during the recent trading sessions,
in addition to the progress of the eleven sectors, except for only three,
and the “Nasdaq 100” index recorded a rise,
which represents a percentage of The Dow Jones Industrial Average rose by 1.5%,
and health care stocks also advanced and reached the top of the rising stocks,
and the Russell 2000 index rose to compensate for its losses.

 

 

Inflation figures

 

The markets are strongly awaiting the inflation figures
that will be announced on Thursday of this week,
and this came after the rise in the basic consumer price index exceeded all expectations of reaching levels
that are the highest in the last 40 years during last September,
and any future signs of an improvement in prices,
the index Consumer prices are still at a level that is higher than its base point at the Federal Reserve,
and the data on employment figures and the increase in wages,
in addition to the increase in unemployment rates,
had a direct impact on the rise of stocks, and thus presented a mixed picture for the Federal Reserve,
which seeks to combat high inflation and the period it is trying to in which control it

 

And the senior market analyst with “Miller Tabak” commented that
the upcoming formation in Congress this week is not clear,
and therefore insomnia related to consumer prices will be of great importance to investors
and said that any better inflation figures than estimates,
lead to the possibility of an increase in stock prices.

At the same time, Chinese stocks that are traded in the United States fell,
after the country decides to adhere to the “zero Covid” policy.

 

 

artıcle name Stocks consolidate their gains

 

 

 

 

 

A big jump in China’s oil imports in five months.

 

It seems that the beast of the Chinese industry has begun to wake up,
as it has gone through a difficult time due to the outbreak of the Corona epidemic,
which has ravaged its economy greatly, while it is known that China is not giving up and withstanding all tests,
the government has begun to boost its oil imports during
the past month to help In the recovery of the economy and resistance to the crisis.
According to Chinese customs data on Monday, China bought about 43.14 million tons last month,
and this is one of the largest deals concluded by China since September and the largest since May.
It was estimated to increase by 4% from September, equivalent to 10.2 million barrels per day.

 

 

 

China is struggling to survive

 

It seems that the excessive industrial trend is dominant at the moment.
Since late September, Beijing has started to raise its fuel exports by about 15 million tons,
and this percentage is expected to continue until the first quarter of next year,
as Bloomberg data showed, which it conducted via oil tankers. And the chargers,
the daily average of China reached nearly 9.3 million barrels of oil, Emma Lee,
an analyst at Vortex, said that the additional quota and the reduction in the official
selling price of Saudi oil grades to Asia had led to an increase in imports,
adding that the growth of China’s imports of crude oil was mostly caused by
The share of exports with the continued slowdown in domestic demand significantly.
All these attempts by China to develop the economy and return the market to its course,
which was hurt by the Corona crisis and the current economic crisis.

 

artıcle name Stocks consolidate their gains

 

 

 

 

 

 

The big downturn in the economy.

 

All of China’s attempts are just a return to the path from which it retreated a lot.
Despite the strength of October’s oil exports, it is considered insignificant.
China’s natural consumption has decreased by about 43% compared to October,
and the operating rates for November reached about 76.4%,
which is the highest percentage since April, according to what was announced.
The sector advisor, Oil Kim,
reported that October purchases are slightly higher than the level of ten million per day,
which is the normal average before the Corona crisis.

 

artıcle name Stocks consolidate their gains

 

 

 

 

 

 

Lamborghini prepares for their IPO.

 

Lamborghini, as usual, is more prosperous than others, even in the darkest times of crisis,
as its sales rose by 8% to reach 7,430 cars in the first nine months of the year,
and its operating profits also increased by 69% to approximately 570 million euros,
coinciding with its advent towards the idea of ​​the public offering,
which has become The dominant thought at the moment for most sectors

 

 

 

The ambitions of the giant Lamborghini are endless.

 

Italian luxury car maker Lamborghini for a long time is seeking to create a new
competitive strategy to present itself to investors in the stock market.

The global car market is currently in a violent struggle.
The last month of its partner, Porsche, which is the most valuable car in Europe,
was very happy when it exceeded its market value, Volkswagen,
one week after its IPO in the Frankfurt Stock Exchange.
Its reputation in the market is one of the biggest reasons that supported this
The Big Leap The 911 was also a great courageous manufacturer to enter
the trading world as well, after being closed for almost a year.

 

 

 

 

Working almost without clear plans

 

Despite Lamborghini’s coming to this step,
it does not have a deliberate plan for the public offering at present,
as stated by Audi, the general supervisor of brands for Volkswagen,
at the same time, Michael Dean, an analyst at Bloomberg Intelligence,
says that the recent increase in Lamborghini’s profits and
the increase in operating profit by 31.9%
The first half of this year constitute a strong argument
for its inclusion in the stock market. Currently,
the IPO of automakers and other companies at
the moment has become the main supporter of resilience,
product development, and the pursuit of the future in general.

Michael Dina also said that the IPO could take place
within the next 18 months depending on the state of the market

 

 

artıcle name Stocks consolidate their gains

 

 

The energy crisis in automotive

The energy crisis in automotive

 

The energy crisis in automotive, Various EU countries have been affected by this energy crisis,
especially in the automotive industry.

We cannot deny that a large part of the European economy depends on mechanization and industry,
especially the automotive industry, by the harsh winter, the scale of the problems will worsen,
prompting governments to intervene and try to control the situation,
especially since suppliers linked to schedules that they may not be able to meet them are the most affected.

 

 

 

 

The market has been greatly affected and signs of higher auto parts prices have begun,
perhaps in the turbulent supply market due to these crises,
where the automotive industry market in Europe is expected to decline significantly,
which may reach one million cars in three months by the end of the year.
It is expected to continue during the new year, as suppliers are significantly affected by the rise in energy costs

 

As we mentioned, the supply shortage, which has led to a significant decline in auto parts,
will put significant weight on manufacturers from the beginning of November until mid-2023.
By winter, the flow of energy to factories may stop, S&P Global Mobility said in its report on
Tuesday, expecting that European factories based in Europe will produce between 4 to 4.5 million cars in the quarter of the year.
If energy restrictions are imposed, auto production could be affected and drop to 2.8 million per quarter,
losing between 4.8 million and 6.8 million units per year.

 

Despite this, there has been a glimmer of hope for Mercedes-Benz,
which announced good increases in sales during the third quarter of more than a fifth in conjunction with inflation.
Despite deteriorating economic expectations and supply problems,
Germany and the Czech Republic have advanced at a time of suffering from Belgian, Spanish, and Italian factories,
which have reached minimum energy self-sufficiency. Germany had another

 

BMW

also BMW confirmed the stability of its quarterly sales compared to last year at less than 588,000 cars.

Mercedes said in a statement that global demand for its car remains very strong despite uncertainty in its neighbour’s energy supply.
It also mentioned a significant recovery in the electric car industry, where deliveries doubled to almost 30,000 cars.

While many automakers continue to report strong demand,
consumer confidence measures in key markets are near record lows amid rising inflation,
and central banks in Europe, the UK, and the US are raising interest rates to tame higher prices,
moves that would reduce demand for large purchase items such as cars.

 

Mercedes

delivered about 517,800 vehicles globally in the third quarter, estimated to increase by about 21%,
compared to the same period last year with strong demand growth in China leading all major regions,
Mercedes said Tuesday. In Europe, where double power bills affect buyers,
Despite semiconductor shortages, deliveries have risen by about 18%. This is due to the fact that production has been hampered by these shortages.
However, despite this hindrance, companies have still managed to increase their output.
This is a positive sign for investors and traders as it shows that companies are still able to meet demand despite challenges.
The partner still fulfils its orders maintaining its reputation and defying all obstacles.

 

 

Stocks declined and the dollar at its highs

Stocks declined and the dollar at its highs sending oil prices declining

 

Stocks declined on Wednesday morning and the Nikkei index
fell to a three-month low under recession concern,
and the dollar returned to 20-year highs on Wednesday,
adding to downward pressure on crude oil prices.

 

topic’s

Nikkei fell to a nearly 3-month low amid global recession concerns

Dollar back to a 20-year peak and FX in Asia affected by Fed hawkish talk

Oil recovery stalled as concern over recession outweighs supply crisis

 

 

 

 

 

 

 

 

 

Nikkei fell to a nearly 3-month low amid global recession concerns

 

Japan’s Nikkei fell to near three-month lows on Wednesday,
as recession concern grew after Wall Street stocks fell deeper in a bear market,
and after a report that Apple abandoned plans for more iPhones.

 

The Nikkei average fell by 2.21 percent to 25984.51 by midday,
from the psychological 26,000 level for the first time since July 4.

 

After opening, the index declined steadily, down about half a percent,
and mid-morning sales accelerated,
as Apple abandoned a plan to increase production of its new smartphones
after the expected surge in demand failed.

 

Of the index’s 225 components, 220 declined, three rose and two traded unchanged.

 

The broader Topix index also fell by 1.72 percent to 1840.78.

 

Investors globally are on the brink as high borrowing costs cause concern
over a widespread recession, with most of the world’s major central banks
focusing directly on tightening policies to contain hyperinflation.

 

 

 

 

 

 

 

 

 

Dollar back to a 20-year peak and FX in Asia affected by Fed hawkish talk

 

 Asian currencies fell on Wednesday,
while the dollar rose to 20-year highs on hawkish statements from Fed officials
and growing demand for safe haven.

 

The dollar index jumped by 0.4 percent to a new 20-year high of 114.68,
while dollar futures rose in a similar range,
and a broad market flight in risk-driven assets increased demand for the dollar’s safe haven.

 

Asian currencies fell sharply as upbeat comments from some Fed
officials suggested more pain in the region due to the rate hike.

 

China’s overseas yuan was among the worst performers today,
falling by 0.7 percent to a record low of 7.2302 per dollar,
while its domestic counterpart traded at lows last seen during the 2008 financial crisis.

 

The People’s Bank of China (PBoC) is struggling to support economic growth severely
hampered by this year’s COVID-19 lockdown,
and China’s economy has barely grown in the second quarter,
likely to shrink in the coming months.

 

Overnight, St. Louis Fed President James Pollard warned that
the United States was facing a serious inflation problem,
likely indicating more tightening monetary policy
as the country struggles with inflation at 40-year highs.

 

Their comments come a few days after the Fed
raised interest rates for the fifth time this year and
warned it was ready to risk economic pain in its fight against runaway inflation.

 

US interest rates rose by 300 points during the year to 3.25 percent,
with 2022 widely expected to end by more than 4 percent. 

 

Asian currencies have fallen this year as rising U.S.
interest rates narrow the gap between risky returns and low-risk returns,
with the region braced for more pain as interest rates rise.

 

The Japanese yen was among the few outliers,
rising 0.1 percent from a 24-year low,
and the currency likely benefited from the government’s intervention
in foreign exchange markets to prevent a further yen depreciation.

 

artical name Stocks declined and the dollar at its highs

 

 

 

 

 

 

 

 

Oil recovery stalled as concern over recession outweighs supply crisis

 

 The oil price recovery is running out of fuel on Wednesday with
concern that short-term demand is slowing to offset a potential
supply shortage caused by OPEC production cuts
and a hurricane in the Gulf of Mexico.

 

Prices have remained near eight-month lows,
as rising interest rates and growing concern over the economic slowdown
have shaken short-term demand expectations.

 

London-traded Brent crude futures rose by 0.1 percent to $84.46 per barrel,
while US West Texas Intermediate crude futures fell
by 0.5 percent to $78.15 per barrel by 01:19 GMT,
and both futures rose by  2 percent on Tuesday.

 

Concern over slowing demand has returned after data from the US Petroleum
Institute showed US crude inventories rose far more than expected last week,
an increase of 4 million barrels compared with forecasts of 333 thousand barrels.

 

These figures have raised further concern that higher interest rates
and higher inflation in 40 years could affect demand in the near term.

 

About 11 percent of US oil production in the Gulf of Mexico,
or 190 thousand barrels per day, was closed this week with
major producers evacuating some offshore platforms
in anticipation of Hurricane Ian.

 

Russia remains ready to pressure OPEC + to cut supplies by at least 1 million barrels per day
(BPD) during its monthly meeting next week,
and other cartel members have also supported production cuts to stabilize oil prices.

 

While crude oil prices fell from their highs earlier this year,
reducing supply, especially from Russia,
could provide a bullish boost by the end of the year,
as well as demand for heating oil during the winter may also support prices.

 

artical name Stocks declined and the dollar at its highs