First Abu Dhabi Bank analyst Simon Ballard says as the new quarter begins oil
prices will remain the primary driver for equities, FX and fixed income. Market
sentiment has been lifted by perceived progress in U.S.-Iran peace talks and a
recovery in Strait of Hormuz shipping, but remains highly sensitive to further
developments. Recent oil weakness has eased global inflationary pressure and
supported gains in European and some Asian equities. First Abu Dhabi Bank
expects global central banks to remain biased toward tightening, while Gulf Arab
markets will face reduced oil revenues; the bank warns against complacency.
