Major stock markets in the Gulf fell in early trade on Wednesday ahead of congressional testimony from Federal Reserve Chair Jerome Powell to gauge the interest rate cut cycle, reports Reuters.
Traders are scouring US economic data and policymakers' speeches to gauge when the Fed would start cutting rates. Markets are pricing in a 68 per cent chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed, as well as 88 basis points of cuts this year.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the US dollar.
Dubai's main share index, opens new tab dropped 0.6 per cent, hit by a 6.4 per cent fall in Commercial Bank, opens new tab and a 0.6 per cent decrease in sharia-compliant lender Dubai Islamic Bank, opens new tab.
In Abu Dhabi, the index, opens new tab eased 0.2 per cent.
The Qatari benchmark, opens new tab declined 0.9 per cent, weighed down by a 1.6 per cent fall in Qatar Islamic Bank, opens new tab.
Saudi Arabia's benchmark index, opens new tab gained 0.7 per cent, led by a 0.8 per cent rise in Al Rajhi Bank, opens new tab and a 1.1 per cent increase in Saudi Telecom Co, opens new tab.
Elsewhere, oil giant Saudi Aramco, opens new tab added 0.3 per cent.
Crude prices - a catalyst for the Gulf's financial markets - edged higher supported by the announcement on Sunday that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) extended their output cuts of 2.2 million barrels per day until the end of the second quarter.
Most Gulf markets in red ahead of key Fed Powell testimony
FE Team | Published: March 06, 2024 23:52:47
Most Gulf markets in red ahead of key Fed Powell testimony
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