DUBAI: Most stock markets in the Gulf ended lower on Tuesday ahead of a reading of US inflation on the eve of a Federal Reserve policy decision which could set the tone for the year ahead, while the Saudi index rebounded from a 20-month low.
The Fed will announce its latest policy decision on Wednesday, followed by a slew of other central banks, as markets are expecting a smaller 50 basis points hike from the Fed.
But investors are focused is on its forward-looking commentary about monetary policy and the economy.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to a direct impact from monetary tightening in the world’s largest economy.
In Abu Dhabi, the index dropped 1%, extending losses for a sixth consecutive session, weighed down by a 3.1% slide in the country’s biggest lender First Abu Dhabi Bank . The Abu Dhabi bourse continued to record price corrections but could see a reversal if oil prices rebound more consistently in the future, Daniel Takieddine, CEO MENA at BDSwiss, said.
Comments
Comments are closed for this article.