Gulf markets muted on Biden win

Gulf stock markets were muted on Sunday (Nov 8) after Jo Biden's U.S. election victory, reflecting expectations that his administration will not herald radical changes for the region's struggling economies.

In Saudi Arabia, the stocks index declined 0.2% at market open but posted some gains in early trading while other Gulf markets were mixed.

Wael Mahdy is a trading manager at Daman Securities.

"The markets reacted positively as the U.S. elections came to a conclusion with the victory of Biden. I think our local markets weren't interacting much last week despite the bullish impact the elections had on the U.S. market and the continuous rise for three consecutive sessions."

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.

Biden's focus on climate change may also not bode well for the oil-rich Gulf countries, which have been trying with limited success to diversify their economies.