Most stock markets in the Gulf were subdued in early trading on Wednesday amid falling oil prices, with investors awaiting minutes of the U.S. 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 (.FTFADGI), opens new tab fell 0.4% with the Aldar Properties (ALDAR.AD), opens new tab sliding 2.3% and Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 2.6%.
Dubai’s benchmark stock index (.DFMGI), opens new tab slipped 0.3%, weighed down by losses in finance, real estate and industry sectors with Parkin Co (PARKIN.DU), opens new tab falling 1.1%, and Emirates NBD (ENBD.DU), opens new tab, the emirate’s largest lender, dropping 1.2%.
The Qatari benchmark index (.QSI), opens new tab edged 0.1% lower, pressured by a 1.3% drop in United Development Co (UDCD.QA), opens new tab and a 1.1% loss in Qatar Navigation (QNNC.QA), opens new tab.
Saudi Arabia’s benchmark stock index (.TASI), opens new tab was little changed, with Etihad Etisalat (7020.SE), opens new tab and Saudi Electricity (5110.SE), opens new tab losing 2.1% and 2% respectively, while ACWA Power (2082.SE), opens new tab gained 1.5% and Savola Group (2050.SE), opens new tab advanced 2.2%.
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 U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.