Major stock markets in the Gulf were mixed in early trade on Thursday ahead of a US inflation report that will likely influence the Federal Reserve’s policy path.
The market is awaiting July Consumer Price Index (CPI) from the United States, due on Thursday, which should provide a steer on the Federal Reserve’s future monetary policy.
Most Gulf Cooperation Council countries, including the UAE, Saudi Arabia and Qatar, have their currencies pegged to the US dollar and generally follow the Fed’s policy moves, exposing the region to a direct impact from any monetary policy move there.
Saudi Arabia’s benchmark index gained 0.7%, on course to extend gains from the previous session, led by a 1.1% rise in oil giant Saudi Aramco.
Among other gainers, Raydan Food Co advanced more than 5% to become the top gainer on the index, after it swung to quarterly profit. In Qatar, the index added 0.2%, helped by a 1% gain in petrochemical maker Industries Qatar.
Oil - which fuels the Gulf economy - recouped early marginal losses on Thursday, climbing to multi-month peaks as the market weighed supply tightness concerns with fuel demand worries ahead of key US inflation data.
Dubai’s main share index fell 0.7%, weighed down by a 1.7% fall in blue-chip developer Emaar Properties after posting a roughly 15% drop in net profit in the second quarter.
Elsewhere, logistics firm Aramex retreated 2.7% as second-quarter profit dropped. In Abu Dhabi, the index eased 0.3%.
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