2024-01-18 14:49:00
© Archyde.com. Investors watch a screen displaying stock information on the Qatari Stock Exchange in Doha in a photo from the Archyde.com archive.
From Atiq Sharif
(Archyde.com) – Most Gulf stock markets closed lower on Thursday following US economic data indicated that the interest rate cutting cycle may not start as early as some had hoped.
Strong US retail sales data on Wednesday reinforced bets that the US Federal Reserve (the central bank) may not move quickly to cut interest rates, and the CME Fed Watch tool reduced the chances of a cut in March to approximately 60 percent, down from 70 percent. percent a month ago.
Council member Christopher Waller said earlier this week that the United States is “close to” the two percent inflation target, but warned once morest a rush to cut interest rates until it is proven that lower inflation is sustainable.
Most Gulf currencies are linked to the dollar, and any change in US monetary policies usually entails similar changes in the UAE and Qatar.
Although the shares of the giant oil company Saudi Aramco (TADAWUL:) rose by 0.5 percent, the main index of the Saudi market fell by 0.9 percent, affected by the decline in the shares of Addis Holding Company by 0.6 percent.
Oil prices rose, which is a catalyst for financial markets in the Gulf region, with the International Energy Agency joining the Organization of the Petroleum Exporting Countries (OPEC) in expecting relatively strong growth in global demand for crude this year, in addition to prices receiving another boost from the disruption of US production and geopolitical risks in… The Middle East.
Dubai’s main index closed 0.9 percent lower, affected by a 2.3 percent decline in Emaar Properties (DFM:).
The index in Abu Dhabi fell 0.1 percent.
The Emirates News Agency said on Thursday that the UAE issued a new law that came into effect on December 1 to regulate partnerships between the public and private sectors.
Each emirate, such as Dubai, has its own frameworks governing public-private partnerships.
The Qatari index fell 0.8 percent, with Qatar Islamic Bank shares falling 2 percent.
Outside the Gulf region, the main index in Egypt rose 0.3 percent, supported by a rise in Credit Agricole Egypt (EGX:) shares by six percent.
Separately, the Council of Ministers announced in a statement that it had approved a draft law allowing searches in the Ras Qattara development area in Western Sahara.
(Prepared by Sherine Abdel Aziz for the Arab Bulletin – Edited by Moaz Abdel Aziz)
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