Major stock markets in the Gulf were subdued in early trade on Tuesday as hawkish remarks from central bankers tempered expectations for early interest rate cuts.
European Central Bank officials on Monday pushed back on expectations on slashing interest rates, with Bundesbank President Joachim Nagel saying it was too early to discuss cuts.
Investors are closely watching Federal Reserve Board Governor Christopher Waller’s speech on the economic outlook at 1600 GMT since markets had so heartily cheered a shift in his hawkish views in November, when he laid out a path to cuts.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia’s benchmark index edged down 0.1%, hit by a 0.5% drop in oil behemoth Saudi Aramco.
Oil prices, which fuel the Gulf’s economy, were mixed, after posting losses the previous session, as broad economic concerns outweighed continued conflict in the Middle East that led to more tanker diversions.
The kingdom’s energy index was down 0.5%.
In Qatar, the index slipped 0.7%, with almost all constituents on the index declining, including shipping and logistic group Qatar Navigation, which fell more than 4%.
Among other losers, Qatar Islamic Bank dropped 0.6% ahead of its earnings announcement.
Dubai’s main share index retreated 0.7%, weighed by a 0.9% fall in blue-chip developer Emaar Properties and a 3.7% slide in Ajman Bank.
The Abu Dhabi index was down 0.4%.
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