On August 28, most stock exchanges across the Gulf region closed lower as market participants adopted a cautious stance ahead of key U.S. economic indicators that may influence the Federal Reserve’s upcoming monetary policy decisions. Attention is focused on the Personal Consumption Expenditures (PCE) Price Index, set for release on Friday, which serves as the central bank’s primary gauge of inflation. n nGiven that many Gulf currencies are tied to the U.S. dollar, the Federal Reserve’s policy direction has significant implications for regional financial stability. Joseph Dahrieh, Managing Principal at Tickmill, noted that U.S. inflation trends and their effect on interest rates play a crucial role in shaping monetary frameworks across GCC nations. n nSaudi Arabia’s primary equity index (.TASI) declined by 0.7%, driven by losses in major constituents such as Al Rajhi Bank (1120.SE), which dropped 1.1%, and ACWA Power Company (2082.SE), down 2.2%. Meanwhile, oil giant Saudi Aramco (2222.SE) saw a modest 0.2% decrease. n nIn Qatar, the benchmark index (.QSI) retreated 1%, with Industries Qatar (IQCD.QA) falling 2.2%. Dubai’s main index (.DFMGI) slipped 0.7%, led by a 1.4% drop in Emaar Properties (EMAR.DU). Abu Dhabi’s index (.FTFADGI) also declined, closing 0.6% lower. n nOil prices, a key driver of Gulf market performance, declined after gains in the prior session. This reversal followed expectations of weaker fuel demand in the U.S. as the summer travel period winds down, alongside the resumption of Russian crude deliveries to Hungary and Slovakia via the Druzhba pipeline. n nOutside the Gulf, Egypt’s blue-chip index (.EGX30) edged up 0.1%, supported by a 2.3% rise in Fawry for Banking Technology and Electronic Payment (FWRY.CA). Additionally, Egypt’s Prime Minister Mostafa Madbouly discussed activating a $7.5 billion partnership package with his Qatari counterpart, according to a statement from Egypt’s cabinet. n
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Most Gulf markets retreat ahead of US economic data
Aug 28 (Reuters) – Most stock markets in the Gulf ended lower on Thursday, ahead of the U.S. economic data that could clarify the Federal Reserve ‘s interest rate outlook. n nInvestors are waiting for the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Fed, scheduled for Friday. n nSign up here. n nThe Fed ‘s stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar. n nSaudi Arabia ‘s benchmark index (.TASI), opens new tab dropped 0.7%, hit by a 1.1% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.2% decline in ACWA Power Company (2082.SE), opens new tab. n nElsewhere, oil giant Saudi Aramco (2222.SE), opens new tab was down 0.2%. n nCaution prevailed among investors ahead of the upcoming U.S. PCE inflation data. This report is critical for GCC markets, as U.S. inflationary trends and their impact on monetary policy heavily influence the region ‘s monetary policies, said Joseph Dahrieh, Managing Principal at Tickmill. n n”Furthermore, oil prices, despite being relatively stable this week, continue to pose a risk to the Saudi market due to their current low levels.” n nOil prices — a catalyst for the Gulf ‘s financial markets — fell after rising in the previous session, pressured by expectations of lower U.S. fuel demand at the end of the summer travel season and by the restart of Russian supply to Hungary and Slovakia through the Druzhba pipeline. n nThe Qatari index (.QSI), opens new tab retreated 1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab losing 2.2%. n nDubai ‘s main share index (.DFMGI), opens new tab was down 0.7%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab falling 1.4%. n nIn Abu Dhabi, the index (.FTFADGI), opens new tab slipped 0.6%. n nOutside the Gulf, Egypt ‘s blue-chip index (.EGX30), opens new tab edged 0.1% higher, helped by a 2.3% rise in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab. n nEgypt ‘s Prime Minister Mostafa Madbouly on Thursday discussed activating a $7.5 billion “partnership package” with his Qatari counterpart, Egypt ‘s cabinet said in a statement. n nReporting by Ateeq Shariff in Bengaluru; Editing by Shilpi Majumdar