Stock markets in the United Arab Emirates ended lower on Monday after a top U.S. central bank policymaker pushed back against expectations of imminent rate cuts, while the Saudi index gained on rising oil prices.
Saudi Arabia's benchmark index (.TASI) advanced 0.7% © Mena Today
Stock markets in the United Arab Emirates ended lower on Monday after a top U.S. central bank policymaker pushed back against expectations of imminent rate cuts, while the Saudi index gained on rising oil prices.
New York Fed President John Williams said on Friday the central bank remained focused on bringing inflation down to its target of 2% and added it was just "premature" to discuss rate cuts at this point.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.5% fall in top lender Emirates NBD (ENBD.DU) and a 1.5% decrease in Taaleem Holdings (TAALEEM.DU).
In Abu Dhabi, the index (.FTFADGI) dropped 0.2%.
The Abu Dhabi bourse moved to the downside after a series of gains last week. The market could remain exposed to some risks with investors' expectations changing, said Daniel Takieddine, CEO MENA at BDSwiss.
"At the same time, the rebound in oil markets could provide some support."
Saudi Arabia's benchmark index (.TASI) advanced 0.7%, led by a 0.6% rise in oil giant Saudi Aramco (2222.SE) and a 3.4% increase in Saudi National Bank (1180.SE).
Oil rose as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruptions, although scepticism around Russia's plan to cut exports in December limited gains.
Outside the Gulf, Egypt's blue-chip index (.EGX30) jumped 2.2%, ahead of presidential election results, as most of its constituents were in positive territory.
The results are due to be announced on Monday, with Abdel Fattah al-Sisi expected to secure a third term that would keep him in power till 2030 in a vote in which he faced no serious challengers.
______
*Markets in Kuwait, Bahrain, Oman and Qatar were closed.
Fire broke out at a major UAE oil industry zone on Monday after a drone attack originating from Iran, authorities said, as the Gulf state's military separately intercepted three Iranian missiles over its waters and a fourth crashed into the sea.
The United Arab Emirates has signed a landmark defence agreement on Monday, acquiring 10 Embraer C-390 Millennium aircraft in what the Brazilian manufacturer describes as the largest international deal ever signed for the type. The contract also includes options for additional units.
Abu Dhabi National Oil Company (ADNOC) announced Sunday a commitment to spend $55 billion on new projects over the next two years, a bold opening move in the UAE's new era of energy independence, coming just two days after the Emirates officially withdrew from the OPEC cartel.
To make this website run properly and to improve your experience, we use cookies. For more detailed information, please check our Cookie Policy.
Necessary cookies enable core functionality. The website cannot function properly without these cookies, and can only be disabled by changing your browser preferences.