https://arab.news/wn3sk
DUBAI: Major stock markets in the Gulf tumbled on Monday, tracking Asian shares lower on fears that the US could be heading for recession, while concerns about a widening conflict in the region added to the worries.
The US unemployment rate jumped to near a three-year high of 4.3 percent in July amid a significant slowdown in hiring, heightening fears the labor market was deteriorating and potentially making the economy vulnerable to a recession.
The worryingly weak July payrolls report saw markets price in a 78 percent chance the Federal Reserve will not only cut rates in September, but ease by a full 50 basis points.
The Qatari benchmark fell 2.5 percent, with all its constituents in negative territory including the Gulf's largest lender by assets Qatar National Bank, which was down 2.3 percent.
Dubai’s main share index dropped 4.2 percent, weighed down by a 8.9 percent plunge in blue-chip developer Emaar Properties.
In Abu Dhabi, the index was down 2.7 percent.
Oil — a catalyst for the Gulf's financial markets — extended losses in a volatile session, as fears of a recession in top oil consumer the US offset supply worries stemming from mounting tensions in the Middle East, the world’s largest oil producing region.