Most Gulf markets retreat as Fed uncertainty persists
By Ateeq Shariff
Sept 9 (Reuters) -Most stock markets in the Gulf ended lower on Monday as investors exercised caution ahead of key U.S. inflation data later in the week that could provide clarity on the size of the Federal Reserve's likely interest rate cut this month.
Investors analysed last week's mixed U.S. jobs data and comments from Fed officials, which suggested a weak labour market but without sufficient justification for a 50-basis point interest rate cut.
The U.S. inflation report on Wednesday will be a key indicator that could shift market expectations for the outcome of the Fed's Sept. 17-18 meeting.
Investors wondered whether the mixed U.S. August payrolls report would be enough to tip the Fed into cutting rates by an outsized 50 bps when it meets next week. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.
Saudi Arabia's benchmark index .TASI dropped 0.2%, with Al Taiseer Group 4143.SE losing 0.5%, and Riyad Bank 1010.SE retreating 2.1%.
Dubai's main share index .DFMGI decreased 0.3%, hit by a 2.4% decline in blue-chip developer Emaar Properties EMAR.DU.
In Abu Dhabi, the index .FTFADGI declined 1%, weighed down by a 2.2% slide in Emirates Telecommunications Group EAND.AD.
The Qatari benchmark .QSI closed 0.4% lower, with the Gulf's biggest lender Qatar National Bank QNBK.QA falling 0.6%.
Outside the Gulf, Egypt's blue-chip index .EGX30 added 0.3%, helped by a 7.9% jump in Egypt Kuwait Holding EKHO.CA as the firm signed market maker agreement with National Investment Co.
Egypt's inflation is forecast to have declined for a sixth month in August, helped by a favourable base effect, but some analysts say it is likely to have increased month on month after a series of government-led price hikes.
SAUDI ARABIA | .TASI lost 0.2% to 11,963 |
ABU DHABI | .FTFADGI dropped 1% to 9,355 |
DUBAI | .DFMGI down 0.3% to 4,359 |
QATAR | .QSI fell 0.4% to 10,216 |
EGYPT | .EGX30 rose 0.3% to 30,375 |
BAHRAIN | .BAX eased 0.6% to 1,938 |
OMAN | .MSX30 lost 0.6% to 4,745 |
KUWAIT | .BKP was flat at 7,789 |
Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber
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.
