Markets Most Gulf indexes drop ahead of concerns over new Fed rate hike By Reuters July 14, 2022 Creative Commons The US dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed Most Gulf bourses slipped into negative territory on WednesdayTraders awaiting US inflation data for cues on next US rate hikeSaudi Arabia fell 1.1%, as Aramco was at near six-month low Most stock markets in the Gulf slipped into negative territory on Wednesday, as traders awaited US inflation data for cues on a large Federal Reserve rate hike this month. Saudi Arabia’s benchmark index fell 1.1 percent to a near six-month low, with oil behemoth Saudi Aramco losing 3.4 percent and Sahara International Petrochemical Co plunging about 10 percent. The US dollar will remain strong for at least the next three months as it basks in both expectations for aggressive Federal Reserve interest rate rises and safe-haven appeal stemming from global recession fears, a Reuters poll of FX analysts showed. Worries that higher rates could bring the global economy to a standstill, or even into a recession, have been the key driver for the slump in world stocks this year and the surge in the safe-haven US dollar. Dubai’s main share index dropped 0.5 percent, weighed down by a 2.9 percent fall in blue-chip developer Emaar Properties and a 0.6 percent decline in logistic firm Aramex. In Abu Dhabi, stocks finished 0.8 percent lower, hit by a 0.7 percent fall in the United Arab Emirates’ biggest lender, First Abu Dhabi Bank. However, Abu Dhabi Ports jumped 3.8 percent, after it signed an agreement to support Hayat Biotech’s global expasion. The Qatari index retreated 1.7 percent, dragged down by a 5.7 percent slide in Qatar Islamic Bank and a 2.6 percent fall in the Gulf’s biggest lender, Qatar National Bank. The Qatari index, which traded after a three session break, reopened lower as investors take into account the current uncertainties in the energy markets, said Farah Mourad, senior market analyst of XTB MENA. “The market continues to suffer from the volatility and changing natural gas market conditions.” ** Egypt and Kuwait markets were closed for a public holiday. SAUDI ARABIA lost 1.1 percent to 11,290 ABU DHABI fell 0.8 percent to 9,161 DUBAI down 0.5 percent to 3,113 QATAR dropped 1.7 percent to 11,883 BAHRAIN closed flat at 1,872 OMAN eased 0.1 percent to 4,115
