Most stock markets in the Gulf were subdued in early trading on Wednesday amid falling oil prices, with investors awaiting minutes of the US Federal Reserve’s latest policy meeting for clues on the timing of rate cuts.
Oil prices, a catalyst for the Gulf’s financial markets, dropped for a third straight session with Brent futures down 1.36% at $81.75 a barrel by 0748 GMT.
Abu Dhabi’s benchmark stock index fell 0.4% with the Aldar Properties sliding 2.3% and Alpha Dhabi Holding declining 2.6%.
Dubai’s benchmark stock index slipped 0.3%, weighed down by losses in finance, real estate and industry sectors with Parkin Co falling 1.1%, and Emirates NBD, the emirate’s largest lender, dropping 1.2%.
The Qatari benchmark index edged 0.1% lower, pressured by a 1.3% drop in United Development Co and a 1.1% loss in Qatar Navigation.
Saudi Arabia’s benchmark stock index was little changed, with Etihad Etisalat and Saudi Electricity losing 2.1% and 2% respectively, while ACWA Power gained 1.5% and Savola Group advanced 2.2%.
Gulf markets drop as political uncertainty rises
Investors look to minutes from the Fed’s most recent policy meeting, due later in the day, after multiple Fed officials on Tuesday said the central bank should wait several more months to ensure inflation is on track before cutting rates.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
American Dollar Exchange Rate