Most stock markets in the Gulf ended lower on Wednesday, in line with global shares, as investors struggled with the possibility that the U.S. Federal Reserve may not cut interest rates as soon as previously expected.
Fed Governor Christopher Waller said the U.S. is “within striking distance” of the central bank’s 2% inflation goal, but it should not rush toward cuts in its benchmark interest rate until it is clear that lower inflation will sustain.
The Fed has left the policy rate in the current range of 5.25% to 5.5% since July.
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 eased 0.1%, hit by a 0.6% fall in oil giant Saudi Aramco.
Most Gulf markets retreat on interest rate worries
Oil - which fuels the Gulf’s economy - fell more than $1 as economic growth in China, the world’s second-largest crude user, slightly missed expectations, raising concerns about future demand, while U.S. dollar strength dented investors’ risk appetite.
The Qatari benchmark declined 0.9%, weighed down by a 2.6% slide in petrochemical maker Industries Qatar and a 1.5% drop in Qatar National Bank, the Gulf’s biggest lender.
In Abu Dhabi, the index closed 0.4% lower, hit by a 0.9% fall in conglomerate International Holding.
Dubai’s main share index, however, reversed early losses to finish 0.2% higher, helped by a 1.6% increase in Dubai Electricity and Water Authority.
Outside the Gulf, Egypt’s blue-chip index fell 0.7%, retreating from record highs it hit in the previous session, with Commercial International Bank losing 1.8%.
========================================= SAUDI ARABIA eased 0.1% to 12,063 ABU DHABI lost 0.4% to 9,724 DUBAI added 0.2% to 4,091 QATAR dropped 0.9% to 10,402 EGYPT down 0.7% to 26,758 BAHRAIN was up 0.1% to 1,988 OMAN fell 0.2% to 4,590 KUWAIT down 0.2% to 7,947 =========================================
Comments