Business
Most Gulf markets retreat ahead of US economic data
Most Gulf markets retreat ahead of US economic data
About this update from Al Rajhi Bank
By Ateeq Shariff Most stock markets in the Gulf ended lower on Thursday, ahead of the U.S. economic data that could clarify the Federal Reserve's interest rate outlook.Investors are waiting for the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Fed, scheduled for Friday.The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar.Saudi Arabia's benchmark index TADAWUL:TASI dropped 0.7%, hit by a 1.1% fall in Al Rajhi Bank TADAWUL:1120 and a 2.2% decline in ACWA Power Company TADAWUL:2082.Elsewhere, oil giant Saudi Aramco TADAWUL:2222 was down 0.2%.Caution prevailed among investors ahead of the upcoming U.S. PCE inflation data. This report is critical for GCC markets, as U.S. inflationary trends and their impact on monetary policy heavily influence the region's monetary policies, said Joseph Dahrieh, Managing Principal at Tickmill."Furthermore, oil prices, despite being relatively stable this week, continue to pose a risk to the Saudi market due to their current low levels."Oil prices — a catalyst for the Gulf's financial markets — fell after rising in the previous session, pressured by expectations of lower U.S. fuel demand at the end of the summer travel season and by the restart of Russian supply to Hungary and Slovakia through the Druzhba pipeline.The Qatari index QSE:GNRI retreated 1%, with petrochemical maker Industries Qatar QSE:IQCD losing 2.2%.Dubai's main share index DFM:DFMGI was down 0.7%, with blue-chip developer Emaar Properties DFM:EMAAR falling 1.4%.In Abu Dhabi, the index ADX:FADGI slipped 0.6%.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 edged 0.1% higher, helped by a 2.3% rise in Fawry for Banking Technology and Electronic Payment EGX:FWRY.Egypt's Prime Minister Mostafa Madbouly on Thursday discussed activating a $7.5 billion "partnership package" with his Qatari counterpart, Egypt's cabinet said in a statement.SAUDI ARABIATADAWUL:TASI fell 0.7% to 10,732Abu DhabiADX:FADGI down 0.6% to 10,119DubaiDFM:DFMGI dropped 0.7% to 6,084QATARQSE:GNRI declined 1% to 11,339EGYPTEGX:EGX30 added 0.1% to 35,727BAHRAINBAHRAIN:BHBX was up 0.2% to 1,929OMAN(.MSX30) gained 0.5% to 5,063KUWAIT(.BKP) retreated 0.6% to 9,096