Gulf shares mixed in early trade, Powell's speech awaited
By Md Manzer Hussain
Aug 22 (Reuters) -Stock markets in the Gulf were mixed in early trading on Thursday after the minutes from the most recent meeting of the U.S Federal Reserve cemented expectations for a September rate cut.
The Fed's minutes showed policymakers in the U.S. were ready to start cutting interest rates as soon as September.
Interest-rate futures have fully priced in a 25-basis-point U.S. rate cut next month, with a one-in-three chance of a 50-bp cut. FEDWATCH
The U.S central bank's Chair Jerome Powell's impending speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
The Abu Dhabi benchmark index .FTFADGI edged up 0.1%, with Multiply Group MULTIPLY.AD rising 3.7% and ADNOC Gas ADNOCGAS.AD advancing 1.3%, while Phoenix Group PHX.AD slipped 1.7%.
The cryptomining and blockchain conglomerate Phoenix said on Wednesday it had partnered with cryptocurrency firm Tether to launch a stablecoin pegged to the UAE dirham.
Saudi Arabia's benchmark stock index .TASI was up 0.3% in early trading, with most of its constituents posting gains. Saudi National Bank1180.SE, the kingdom's largest lender, rose 0.4% and Dr Sulaiman Al Habib Medical 4013.SE advanced 1.4%.
Dubai's benchmark stock index .DFMGI fell 0.1%. The tolls operator Salik SALIK.DU dropped 1.8% and Commercial Bank of DubaiCBD.DU slipped 5.5%.
Tecom GroupTECOM.DU, however, gained 1.8% after business park operator said it completed acquisition of new commercial and industrial assets as part of an 1.7 billion dirhams strategic plan.
The Qatari benchmark index .QSI was down 0.1%, pressured by losses in finance, real estate and materials sectors with Qatar National Bank QNBK.QA, the region's largest lender, sliding 0.5% and Mesaieed Petrochemical MPHC.QA dropping 0.5%.
Reporting by Md Manzer Hussain
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
