Trump's escalation against China cloud the Saudi stock market

Renewed pressure on the Saudi Stock Exchange amid sharp losses in global markets after returning trade between the United States and China. Will the expected quarterly business results restore the balance in the market? The general index “Tasi” fell by more than 2% at the beginning of the week’s trading, before reducing its losses to 1.5%, with 11.410 points, with almost all shares dropping. Muhammad Zidan, chief financial analyst at Al-Sharq News, attributed the decline of today’s market to some individual investors to the sale to provide liquidity to support their positions in foreign markets after their serious losses. But he added: “As long as we do not close below 11,000 points, the possibilities of a positive return will increase in the medium term, as strong fundamental factors and company results are able to compensate for any decline.” Trump is escalating again, and Beijing challenges US President Donald Trump over the weekend that he saw “no reason” to meet with his Chinese counterpart, threatening to impose 100% customs duties on Chinese goods starting from the first November, while Beijing replied that it would take corresponding measures to protect his rights. Also read: China calls on the United States to stop threatening rates. This led to a sharp fall in US stocks on Friday, as the Standard & Poor’s 500 index fell by 2.7%, which had its heaviest daily losses since April, while the Nasdaq fell 100 by 3.5%. Meanwhile, oil lost 3.8%, with a barrel of Brent trading at less than $ 63 a barrel. Two weeks of expected fluctuation. Ikrami Abdullah, chief financial analyst at the Al-eqtisadiah newspaper, expects the performance of the Riyadh Stock Exchange to become clear on the first November on the performance of the Riyadh Stock Exchange. He expressed his fear that the biggest impact on the shares of the energy giant could be “Aramco” due to the decline in oil prices. He added during an intervention with Al-Sharq: “If customs lights are imposed from the beginning of November, it will be very difficult to lower interest rates because the duties will affect economic growth and inflation, which can lead to the holding of interest rates at current levels.” But he pointed out that the financial results of listed companies for the third quarter will be another influential factor that will determine the market direction during the upcoming period. An opportunity to attract liquidity. Financial analyst Muhammad Al-Maimoni believes that the ongoing turmoil in global markets may form an opportunity for the Saudi market to attract more liquidity. He has described recent commercial developments as a kind of ‘unparalleled risk’, such as wars and natural disasters, after which some market adjustment takes place. Al-Maimoni was of the opinion that it is a favorable opportunity for those who want to build positions in the Saudi market, especially in light of stability and optimistic economic expectations. “