Markets Brief: The latest updates on key developments

People walk past a screen showing stock indexes in Hong Kong. (File photo: Reuters)

Saudi Aramco takes headlines as it looks to drum up support for its initial public offering. Meanwhile, unrest continues in Lebanon, tormenting the country’s embattled economy. Elsewhere, ratings agencies issue mixed messages for the latest economic indicators across the region. Al Arabiya English has provided a news brief on all of this and more from global markets to developments in the Middle East.

Markets reacted as China and the US continued “phase one” trade deal talks

Top US and Chinese negotiators held phone calls Tuesday to work on “remaining issues” for the phase one trade deal would see tariffs rolled back, Chinese state media reported. Global stocks have been buoyed by optimism of a deal. Meanwhile, oil prices held above $63 a barrel on the news.

In Saudi Arabia, Aramco IPO retail subscriptions so far reached $5.8 billion

Retail subscriptions in Aramco’s initial public offering (IPO) have so far reached 21.77 billion riyals ($5.8 billion) by Monday, according to Samba Capital, the lead manager of the IPO. Banks in Saudi Arabia have been directed to lend to retail customers at a ratio of 2 to 1 for every riyal invested towards buying Aramco’s shares. The oil giant is offering 1.5 of its shares on the Saudi Stock Exchange (Tadawul).

Turkey’s lira reversed gains after Ankara said it would test out components of its Russian air defense system

The lira slid as much as 0.5 percent on Monday amid fears of a fallout between Washington and Ankara, news agencies reported. This came after Turkey said it will try out a component of its newly acquired Russian air defense system.

UAE Islamic insurer Dar Al Takaful suspended trading ahead of its board meeting

UAE-based Islamic insurance company Dar Al Takaful suspended trading today ahead of its results disclosure with its Board of Directors

S&P says Dubai’s Expo 2020 is “unlikely” to end the emirate’s real estate slump

Dubai’s upcoming Expo 2020 will help hotels and retailers, but is unlikely to materially improve the long-term conditions in the city’s real-estate sector, which has been suffering from systemic oversupply, said ratings agency Standard & Poor’s.

Fitch Ratings affirmed Egypt at “B+” stable outlook, as fiscal reforms kick in

Fitch Ratings affirmed its Egypt long-term foreign currency issuer default rating at “B+” with a stable outlook, citing a recent track record of economic and fiscal reforms, as well as improvements to macroeconomic stability.

Saudi Aramco met with investors in Abu Dhabi, Dubai to drum up support for its IPO

Aramco executives met officials of Abu Dhabi Investment Authority (ADIA), one of the world’s biggest sovereign wealth funds, and other fund managers. The company had cancelled its roadshows outside of the Gulf.

Major Lebanese business groups called for a general strike as the country’s political and economic crisis continues

The Lebanese Economic Bodies group, which includes industrialists and bankers, has called for a three-day general strike to pressure politicians to form a government and end the country’s ongoing economic crisis.

Dubai’s economy reported a growth of 2.1 percent as most sectors in the city improved

Standout sectors of the economy include whole and retail growth of 3.3 percent year-on-year for the first half of the year, contributing 25.5 percent to the city’s gross domestic product (GDP), and hospitality and restaurant growth of 2.7 percent, buoyed by increasing tourism, contributing 5.1 percent to GDP.

Moody's said the banking sector across the Gulf is stable, underpinned by solid economic growth

Ratings agency Moody’s also pointed to banks’ strong capital buffers – financial assets held in case of crisis – and substantial liquidity as additional supporting factors for the stable outlook. It holds stable outlook for all GCC banking systems expect Oman – which has a negative outlook due to concerns on government finances, liquidity, and the effect of a lower for longer oil price.

Last Update: 06:55 KSA 09:55 - GMT 06:55