![]() The gains recorded during the week added to YTD performance of 14.5%, the second best in the region. Saudi Arabia was the best performer, recording gains of 5.8% during the week, as the index continues to remain the most preferred market, supported by continued funds inflow. On the regional front, the sentiments were mostly positive during the week as five out of the eight indexes ending in green, while three were in the negative territory. ![]() Going forward, investors will continue to take cues from first quarter earnings, which will help accessing the overall economic environment and further substantiate the optimistic outlook highlighted during the fourth quarter of 2017. Further, oil prices continued to maintain the positive momentum with gains of 2.0% W-o-W to reach USD 74.06 per barrel at the end of the week. ![]() Al Masah Capital: Global markets have ended higher during the week as strong earnings and positive developments on the economic front boosted sentiments. However, debt among state-owned companies is considered to be a risk factor. The UAE’s debt position is considered by the report to have been gradually defused since the 2008 crisis in Dubai, primarily due to robust GDP growth over the last few years. The selective introduction of import tariffs and VAT will not negatively impact the economic growth in the emirates but will instead support the fiscal situation in light of lower oil-related activities, according to the report. Dubai received an upgrade to BBB+, stemming from a gradual reduction in total debt, including contingent obligations from state-owned companies, from 141% at the end of 2013 to 111% at the end of 2016. A report by Independent Credit Review (I-CV), a subsidiary of Fisch, confirmed Abu Dhabi’s credit quality as AA-, with the emirate benefitting from comfortable reserves, but with a forecast of a slightly negative national budget and rising debt levels over the coming years. Zawya: Growth in Abu Dhabi and Dubai will remain at a sustained level of approximately 3% over the next few years, if oil prices remain stable around current levels growth is predicted to be steady, albeit modest when compared with over 4% per annum achieved pre-2015, according to Fisch Asset Management (Fisch). But trade tensions, such as the US and China's recent tariff announcements, could take a direct toll on trade and the economic activity and also cause a financial market turmoil that would tighten financial conditions and hurt confidence. Risks to the global growth forecasts were broadly balanced for the next few quarters, with the potential for stronger business profits to increase hiring and investments that could boost productivity. Forecasts were cut slightly for Canada, the MENA countries, as well as a number of low-income developing countries. growth through 2020, but these effects would then reverse quickly, causing a slowdown. corporate income tax rates and accelerated investments due to a temporary tax break would boost U.S. growth forecast by 0.2% points for both years, to 2.9% for 2018 and 2.7% for 2019. The IMF kept its 20 global growth forecasts unchanged at 3.9% for both years after upgrades in January. ![]() fiscal stimulus that will fade by the early 2020s, while increased tariffs could damage market confidence and output, according to the IMF.
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