Holiday calm and global market winds boost Saudi index.

## Saudi Market Braces for Intense Economic Data Flow Next Week

The Saudi market is expected to experience a significant influx of global economic data next week, from November 22nd to 27th, 2026. Key releases include inflation figures from the Eurozone, Germany, Japan, and the United States, alongside growth numbers from major economies. This comes amidst investor anticipation regarding potential global interest rate cuts and growing concerns about a slowdown in industrial activity, with particular focus on the impact of oil prices and U.S. rig counts on the performance of local energy company stocks.

Data from the U.S. Producer Price Index (PPI) and the European Consumer Price Index (CPI) are expected to trigger sharp market fluctuations, impacting risk appetite and capital flows towards Saudi equities, particularly in the banking, petrochemical, and energy sectors.

The week is anticipated to begin at a relatively slow pace due to Saudi Founding Day holiday, coupled with holidays in Japan and China, potentially reducing initial trading volumes. However, markets are expected to gain momentum with the full resumption of global market activity, as local investors closely monitor U.S. market performance to gauge investment flow direction.

The Eurozone CPI, including the core reading excluding food and energy, will heighten market sensitivity. Any unexpected increase in the index could reinforce concerns about the European Central Bank maintaining its tight monetary policy, negatively impacting risk appetite. Given the close trade relations between Europe and the Kingdom, any slowdown in European consumption could affect demand for industrial products, thereby impacting the performance of Saudi petrochemical companies. German inflation data from North Rhine-Westphalia will also serve as an early indicator for the national German inflation reading.

U.S. economic data will play a crucial role in shaping market direction, with releases including factory orders, the S&P Global Composite PMI, and the Atlanta Federal Reserve’s GDPNow reading, providing insights into the strength of economic growth in the final quarter. Any signs of slowing growth could bolster expectations of interest rate cuts, supporting emerging markets, including the Saudi market.

Friday holds particular significance with the release of the U.S. PPI, a key indicator of inflation trends. A higher-than-expected reading could pressure stocks globally, while a lower reading could drive markets higher. Furthermore, the Baker Hughes rig count report will influence oil prices, and consequently, the performance of Saudi energy company stocks.

Markets will also monitor the Tokyo CPI, reflecting inflation trends in Japan and a key indicator for the Bank of Japan’s monetary policy. Australian building data will provide signals regarding Asian economic activity and demand for raw materials, and any slowdown could impact commodity prices and affect Saudi export-oriented companies.

German and French GDP figures, along with German unemployment rates, will be influential in determining the trajectory of Europe’s two largest economies. Continued weakness in growth or a rise in unemployment could increase fears of a European recession, impacting external demand and consequently the Saudi market.

Overall, the performance of the Saudi market is expected to be influenced by three key drivers: the direction of global inflation and its impact on interest rate expectations, the trajectory of oil prices linked to U.S. production data, and the performance of the U.S. economy as a primary driver of global liquidity.

The banking sector could benefit from any delay in interest rate cuts, while positive expectations of rate cuts could support growth stocks. The energy sector’s performance will remain tied to the Baker Hughes data and oil price volatility.

In conclusion, the Saudi market faces a period of global volatility this week, but the ultimate direction will be determined by U.S. inflation data and oil price developments, making risk management a top priority for local investors.

**Key Drivers:**

* Eurozone inflation (annual and core reading).
* U.S. Producer Price Index (year-on-year/month-on-month).
* U.S. GDPNow.
* German and French GDP.
* U.S. oil rig count.
* German unemployment rate.

**Advice for Saudi Investors:**

* Monitor inflation data before making investment decisions.
* Avoid hasty decisions amid volatility.
* Diversify investment portfolios.
* Follow oil prices daily.
* Capitalize on dips to purchase stocks.
* Maintain a cash position of at least 20% to manage volatility.