Executive Summary
GCC macros remain in uncertain territory, with OPEC+ production cuts having an evident impact on economic growth. GCC equity markets remain choppy, with high oil prices providing support while higher for longer interest rates add downward pressure. Foreign inflows to GCC markets have witnessed an uptick in recent months, especially in the case of Qatar whose valuations are relatively attractive. Banks in the region enjoy a better ROE compared to their global counterparts, but their exposure to economies like Turkey, Egypt and Pakistan present downside risks. Global Markets continue to rally, with Japan outperforming others during H1 2024 owing to the depreciation of the Yen against the Dollar. With most markets at a life-time high, investors need to look deeper for alternative opportunities. Sector rotation and some Emerging Markets could be trends to watch out for.
