Major stock markets in the Gulf were mixed in early trade on Tuesday on rising oil prices and ahead of a crucial inflation report later this week.
Oil prices - a catalyst for the Gulf’s financial markets -rose slightly due to a weak dollar, and expectations that the OPEC+ producer group would deepen and extend output cuts due to fears demand would remain subdued.
Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 2.9% gain in auto rental firm Lumi.
Dubai’s main share index added 0.2%, with blue-chip developer Emaar Properties rising 0.8% and a 0.6% increase in sharia-compliant lender Dubai ISlamic Bank.
Markets are pricing in a 96.8% likelihood that the US central bank will leave interest rates unchanged next month, with the possibility of a rate cut starting to gain ground in mid-2024, according to CME’s FedWatch tool.
Most Gulf markets drop on falling oil prices
Investors will focus this week on the Fed’s preferred measure of inflation on Thursday and euro zone consumer inflation figures for further clarity on the where inflation is headed.
COP28 host the United Arab Emirates planned to discuss possible natural gas and other commercial deals ahead of UN climate talks that begin this week, an investigation by the BBC and the Centre for Climate Reporting (CCR) said on Monday.
In Abu Dhabi, the index eased 0.1%.
The Qatari benchmark declined 0.5%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar, which was down 0.6%.
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