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Gulf shares fluctuate on Fed rate cuts uncertainty

Gulf stocks had a mixed start to the trading session on Monday, as investors grew cautious in anticipation of this week's Jackson Hole Symposium for clues about the next U.S. Federal Reserve policy move.

The U.S. released data on July retail sales on Friday. Although the results were as expected, a weaker consumer sentiment and a softer factory production suggested that tariffs are weighing down on certain parts of the U.S. economy. This clouded the Fed's interest rate path. The traders are pricing in an 85% probability of a 25 basis-point rate cut on September 17 and further easing at year's end.

The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.

Saudi Arabia's benchmark index fell by 0.3% on Wednesday, ending two sessions of gains. Most constituents were lower. Saudi National Bank, by assets the largest lender in Saudi Arabia, fell 1.2%, while Al Nahdi Medical dropped 1.6%.

Sumou Real Estate's share price rose by 1.7% following the award of a contract for infrastructure development in Jeddah.

The benchmark index in Qatar fell 0.5% due to declines among blue chips. Qatar Islamic Bank slipped 1%, and Industries Qatar dropped 1.1%.

The benchmark Abu Dhabi index rose 0.1%, aided by gains of 1.3% in Abu Dhabi Commercial Bank as well as 1.6% in Lulu Retail.

Dubai's benchmark index rose 0.3%, boosted by shares in real estate, financial and industrial companies. Emaar Properties rose 1.7%, while toll operator Salik increased 1.9%.

(source: Reuters)