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Gulf markets mixed as Biden win is no 'make or break' for regional economies

November 09, 2020 00:00:00

DUBAI, Nov 8 (Reuters) : Gulf stock markets were muted on Sunday after Joe Biden’s U.S. election victory, reflecting expectations that his administration will not bring radical changes to the region’s struggling economies.

In Saudi Arabia, the stocks index declined 0.2% at market open but posted some gains in early trading and was up 0.3% at 0725 GMT. Other Gulf markets were mixed.

Expectations of moderate oil prices and a weaker U.S. dollar under a Biden administration could add pressure on Gulf government’s budget deficits, analysts say, accelerating the need for reforms.

“Long-term, low global interest rates, low oil prices, and a weaker U.S. dollar matter most and are generally negative for the Gulf,” said Hasnain Malik, head of equity research at Tellimer.

“But, ultimately, the waning strategic interest of the U.S. in the region and the general disinterest of the U.S. electorate in most aspects of foreign policy is the same under Biden or his predecessor,” he said.

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