Stock markets in the United Arab Emirates fell on Friday, tracking weakness in global equities, as hawkish signals from U.S. Federal Reserve policymakers dampened expectations of an imminent interest rate cut.
An increasing number of Fed officials have adopted a more cautious stance on further easing, citing stubborn inflation and a resilient labor market despite two rate cuts this year.
Markets now price a 49% chance of a quarter-point December Fed cut, compared with just over 60% earlier this week.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Dubai’s benchmark index fell 0.7%, its third straight daily decline, with almost all sectors in negative territory.
Emirates NBD , the emirate’s largest lender, slipped 2.3%, while Salik dropped 2.1%. The toll operator reported a year-over-year increase in third-quarter net profit, but experienced a sequential decline from the previous quarter.
In Abu Dhabi, the index was down 0.4%, extending its losing streak to a third session, with most constituents lower. Blue-chip developer Aldar Properties fell 1.6% and Presight AI Holding dropped 6.6%. Among other decliners, International Holding Co edged lower, while its units Multiply Group and Ghitha Holding dropped 0.4% and 4.7%, respectively.
Conglomerate IHC has named the leadership team for its newly formed investment platform 2PointZero Group, created through the merger of 2PointZero, Multiply Group and Ghitha Holding, it said late on Wednesday.
Both UAE benchmarks ended the week lower, their third consecutive weekly loss.
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ABU DHABI down 0.4% to 9,918
DUBAI dropped 0.7% to 5,950
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