Most major stock markets in the Gulf fell in early trade on Wednesday tracking Asian shares lower as markets weighed the possibility of another US interest rate hike while waiting on comments from Federal Reserve Chair Jerome Powell later in the day.
Expectations have been building in recent days that US policy rates have peaked and cuts could begin as early as May, following a softening in key monthly jobs data at the end of last week and a tempering in the Fed’s hawkish stance.
However, investors remain sensitive to the possibility of more hikes amid guarded remarks from central bank officials.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the US dollar.
The Qatari benchmark dropped 0.3%, dragged down by a 0.7% fall in petrochemical maker Industries Qatar and a 0.6% decrease in Qatar Islamic Bank. Dubai’s main share index retreated 0.5%, weighed down by a 1.3% fall in blue-chip developer Emaar Properties.
Gulf markets end mixed; Qatar snaps 7-day winning streak
In Abu Dhabi, the index fell 0.2%, with conglomerate International Holding retreating 0.2%, after reporting fall in quarterly profit.
Saudi Arabia’s benchmark index, however, gained 3%, led by a 3.1% gain in Lumi Rental Co.
However, oil giant Saudi Aramco slipped 0.5%. Oil prices - which fuel the Gulf’s economy - struggled after sliding to their lowest levels in over three months in the previous session on concerns of waning demand in the world’s top oil consumers, the United States and China.
Comments
Comments are closed for this article.