Gulf markets slide on US recession fears, regional tensions
Aug 5 (Reuters) -Major stock markets in the Gulf tumbled on Monday, tracking Asian shares lower on fears that the United States could be heading for recession, while concerns about a widening conflict in the region added to the worries.
The U.S. unemployment rate jumped to near a three-year high of 4.3% 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% chance the Federal Reserve will not only cut rates in September, but ease by a full 50 basis points. FEDWATCH
Saudi Arabia's benchmark index .TASI declined 3.1%, dragged down by a 4.7% slide in aluminium products manufacturer Al Taiseer Group 4143.SE, while the country's biggest lender Saudi National Bank 1180.SE retreated 4% despite reporting a rise in quarterly profit.
The Qatari benchmark .QSI fell 2.5%, with all its constituents in negative territory including the Gulf's largest lender by assets Qatar National Bank QNBK.QA, which was down 2.3%.
Israel and the United States are bracing for a serious escalation in the region after Iran and its allies Hamas and Hezbollah pledged to retaliate against Israel for the killings of Hamas' leader Ismail Haniyeh and Fuad Shukr, a top military commander from Lebanese armed group Hezbollah, last week.
Dubai's main share index .DFMGI dropped 4.2%, weighed down by a 8.9% plunge in blue-chip developer Emaar Properties EMAR.DU.
In Abu Dhabi, the index .FTFADGI was down 2.7%.
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 United States offset supply worries stemming from mounting tensions in the Middle East, the world's largest oil producing region.
Reporting by Ateeq Shariff in Bengaluru; Editing by Mrigank Dhaniwala
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