MajorMajor Gulf markets jumped sharply after comments from Donald Trump, except Qatar, whose bourse was shut for a public holiday ¹. The underlying reason for the surge in market activity is due to the declarations of victory that Trump made which have deeply shaken the global markets.

‎Market Reaction

‎An immediate response to what Trump said was seen in the soaring dollar. On the other hand, crude fell 2% after consecutive increases. The rate at which crude was falling was further compounded by the increase in U.S. crude stock, which rose way above the estimated quantities.

‎Regional Market Performance

‎Where Qatar’s market remained closed, the other giant markets in the Gulf region had recorded a sudden boom. This can be easily identified in Saudi Arabian market that, due to investors’ euphoria based on what Trump had to say, recorded a rocket rise in their stock prices. Similarly, such was the scenario in the United Arab Emirates and Kuwait also.

Investor Sentiment

‎‎It is as a result of investor confidence in Trump’s economic policies that has seen the boom in the Gulf markets. Comments from Trump have created optimism for investors who would expect business-friendly conditions and improved economic growth. This optimism is translated into higher investment activities as market gains follow.

‎Global Economic Implications

‎‎Trump’s comments have impacts beyond regional markets into the world’s economic effects. For instance, the reduction in crude prices can have a massive effect on oil-producing countries and the global energy market. On the other hand, the increase in the dollar can influence international trade and currency markets.To put it simply, the remarks made by Donald Trump were profound to major markets in the Gulf as there was immense gain recorded within the region. Time alone would determine how these markets are going to do well with the shifting tide of investor sentiments.

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