Most major stock markets in the Gulf rose in early trade on Tuesday as investors awaited interest rate decisions by US Federal Reserve policy meeting later this week.
The Fed is expected to leave policy rates on hold at the end of its two-day meeting that starts on Tuesday. Market participants will focus on the message from policymakers to gauge the interest rate outlook.
Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to the direct impact of monetary tightening in the world’s largest economy.
Saudi Arabia’s benchmark index advanced 1%, buoyed by a 10% surge in Etihad Atheeb Telecommunication Co following an upbeat quarterly earnings.
The telecoms firm, which is on track for its best day since Oct. 15, reported second-quarter net profit of 47.9 million riyals ($12.77 million), up from 6.6 million riyals year ago.
Separately, the World Bank said on Monday it expected global oil prices to average $90 a barrel in the fourth quarter and fall to an average of $81 in 2023 as slowing growth eases demand, but warned that an escalation of the latest Middle East conflict could spike prices significantly higher.
Most Gulf markets end higher ahead of US Fed rate meeting
Oil prices - a key factor for the Gulf’s financial markets, rose in Asian trade after a drop of more than 3% in the previous session, as worries over supply stirred by conflict in the Middle East blunted a dismal showing of China data.
Dubai’s main share index gained 0.2%, helped by a 1.2% rise in blue-chip developer Emaar Properties. In Abu Dhabi, the index added 0.3%.
The Qatari benchmark eased 0.5%, with petrochemical maker Industries Qatar losing 3.5%. Israeli troops and tanks attacked Gaza’s main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave.
At least 8,306 Palestinians have been killed, including 3,457 children, in Israeli strikes on Gaza since Oct. 7, the health ministry in Hamas-controlled Gaza said on Monday.
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