UAE markets slip ahead of US inflation data; oil weighs on sentiment

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By Mohd EdreesStock markets in the United Arab Emirates finished lower on Friday as investors adopted a cautious stance ahead of U.S. inflation data that could shape the Federal Reserve’s upcoming interest rate decisions.Investors are awaiting the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Fed, scheduled later on Friday.The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar.Dubai’s main stock index DFM:DFMGI closed 0.3% lower, reversing earlier gains as losses in banking and utility shares weighed on the market.The UAE's largest sharia-compliant lender, Dubai Islamic Bank DFM:DIB, fell 1.3%, while utility firm Emirates Central Cooling System Corporation DFM:EMPOWER dropped 2.9%Dubai business park operator Tecom Group's DFM:TECOM board approved an AED 1.6 billion ($435.66 million) investment to acquire 138 land plots on Thursday. Tecom Group's shares were trading 1.8% down.The Dubai index is trading near a key support level, a breach of which could open the door for a more significant correction, especially after several weeks of uncertain trading that followed a period of strong gains, said Milad Azar, market analyst at XTB MENA.Abu Dhabi's benchmark index ADX:FADGI slipped 0.2%, pressured by a 1% fall in top developer Aldar Properties ADX:ALDAR and a 0.9% decrease in Adnoc Gas ADX:ADNOCGAS.Oil giant Abu Dhabi National Oil Company (ADNOC) raised $317 million in an institutional placement of a 3% stake in ADNOC Logistics & Services ADX:ADNOCLS through a bookbuild offering, it said on Thursday.Shares of ADNOC Logistics & Services edged up 0.2%.The Abu Dhabi index recorded a 1.1% loss for the week, its fifth straight weekly decline, while Dubai’s market fell 1%, marking its third consecutive week in the red, according to LSEG data.Oil prices - a major driver for Gulf financial markets - declined on Friday amid uncertainty over Russian supply and expectations of softer demand as the U.S. summer driving season winds down.Brent crude (LCoC1) was down 0.7% at $68.21 a barrel by 1133 GMT. ABU DHABI down 0.2% to 10,095DUBAI fell 0.03% to 6,064 ($1 = 3.6726 UAE dirham)

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