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Tadawul Shares Start Week Lower as Russia-Ukraine Geopolitical Tensions Flare

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The Tadawul All Share Index ended Sunday at 0.25% in the red as investors turned their attention to the aftermath of the US-China meeting last week.

"A Chinese foreign ministry readout noted that Presidents Xi and Trump agreed to establish 'China-US constructive strategic stability' to guide the next three years of relations. It holds the potential to expand cooperation on the economy and trade, health, agriculture, tourism, culture, and law enforcement," ING said. "The media and market focus was on the geopolitics side leading up to the summit, especially watching for any potential developments on Iran and Taiwan. No major breakthroughs were expected given the positions of both sides were well known heading into the meetings."

In other news and dampening sentiment is the continued geopolitical tensions between Ukraine and Russia. Ukraine launched its biggest drone attacks in Moscow on Sunday. The retaliatory attacks resulted in at least four casualties and property damage.

Looking ahead to the week, the local calendar will be quiet. Investors will turn their focus to the US Federal Reserve's latest meeting minutes on Wednesday after Jerome Powell's tenure as Fed chair ended. Powell will, however, continue to serve as the group's chair pro tempore until Kevin Warsh is sworn in as its new US Central Bank head.

Back at home, Ades Holding (SASE:2382) extended its offshore shelf drilling contract with Tenaz Energy Netherlands. The deal involves drilling operations in the North Sea's Dutch sector. Shares of the drilling services company edged up 0.83% at closing.

Meanwhile, Mohammed Hasan AlNaqool Sons (SASE:9514) is expanding its production and sales capacity with the purchase of 10 ready-mix concrete mixers and two ready-mix concrete pump trucks from Sani International Trading Development Co. The concrete manufacturer closed flat.

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Asia Markets

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$^DJI$^IXIC$^SPX$DXCM