Mideast Stocks: Most Gulf shares rise on Fed rate cut hopes; corporate earnings mixed
Traders overwhelming expect the Fed to cut rates in September after data this week showed U.S. inflation increased at a moderate pace in July.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
The Qatari benchmark index rose 0.8%, with almost all constituents advancing. Qatar National Bank, the region's largest lender, gained 1.7% and Qatar Islamic Bank climbed 1.2%.
Dubai's benchmark stock index was up 0.4%, supported by gains in real estate, industry, finance, and utilities sectors. Blue-chip developer Emaar Properties rose 1% and toll operator Salik advanced 3.8%. Salik posted a 49.6% increase in second-quarter net profit on Wednesday, beating estimates.
Air Arabia slipped 0.8% as the low-cost carrier posted a 10% drop in second-quarter net profit attributable.
Saudi Arabia's benchmark stock index inched up 0.1%, aided by gains in consumer staples, finance, and real estate.
Saudi Industrial investment climbed 4.4% and Saudi National Bank, the kingdom's largest lender by assets, added 0.9%. Saudi Printing And Packaging surged 8.4% after it said it has signed a financing agreement with Saudi Research and Media Group.
The Abu Dhabi benchmark index traded in a narrow range as gains in technology, real estate and industry stocks offset losses in consumer staples, energy and communication shares.
RAK Properties was up 1.3% after the real estate developer reported a 95% jump in second-quarter net profit. Investcorp Capital slid 1.3% after reporting a 22% drop in full-year net profit on Wednesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
21 minutes ago
- Khaleej Times
Oil prices rise as Fed rate cut, Trump-Putin talks loom
Oil prices rose about 1% on Thursday after U.S. President Donald Trump warned of "severe consequences" if his talks with Russian President Vladimir Putin on Ukraine fail and on expectations that a U.S. interest rate cut next month could spur oil demand. Central banks, like the U.S. Federal Reserve, use interest rates to control inflation. Lower interest rates reduce consumer borrowing costs and can boost economic growth and demand for oil. Brent crude futures were up 87 cents, or 1.3%, to $66.50 a barrel at 10:53 a.m. EDT (1453 GMT), while U.S. West Texas Intermediate (WTI) crude rose 88 cents, or 1.4%, to $63.53. Those price gains pushed both crude benchmarks out of technically oversold territory for the first time in three days. Brent closed on Tuesday at its lowest price since June 5 and WTI closed at its lowest price since June 2 due in part to bearish inventory and supply data from the U.S. Energy Information Administration and the International Energy Agency. Putin on Thursday praised "sincere efforts" by the U.S. to end the war in Ukraine and floated the prospect of a nuclear arms deal ahead of a summit on Friday in Alaska with Trump. U.S. allies in Europe have urged Trump to stand firm. Russia was the second-biggest producer of crude in 2024 behind the U.S., so any agreement that may ease sanctions on Moscow would likely boost the amount of Russian oil available for export to global markets. Trump on Wednesday threatened "severe consequences" if Putin does not agree to peace in Ukraine. The U.S. president did not specify what the consequences could be, but he has warned of economic sanctions if the meeting on Friday proves fruitless. Trump has threatened to enact secondary tariffs on buyers of Russian crude, primarily China and India, if Russia continues its war in Ukraine. "The uncertainty of U.S.-Russia peace talks continues to add a bullish risk premium given Russian oil buyers could face more economic pressure," Rystad Energy said in a client note. Some analysts, however, remained sceptical that Trump would take action that could significantly disrupt oil supplies. FED RATE CUT Expectations that the Fed will cut interest rates in September also propped up oil prices. Traders overwhelmingly believe a cut will happen next month after U.S. consumer prices increased at a moderate pace in July. U.S. Treasury Secretary Scott Bessent said he thought an aggressive half-percentage-point cut was possible given recent weak employment numbers. But a jump in U.S. wholesale prices last month looks to have all but erased the possibility that the Fed will deliver a jumbo-sized half-percentage-point interest rate cut in September, though expectations for a quarter-percentage-point move next month, followed by another in October, remain intact. San Francisco Fed President Mary Daly has pushed back against the need for a 50-basis-point rate cut at the U.S. central bank's September 16-17 meeting, the Wall Street Journal reported on Thursday. In Europe, meanwhile, Norwegian oil and gas investments are expected to peak this year, and start declining next year as major projects are completed, a statistics office survey of industry players showed on Thursday. Norway produces about 2% of global oil. It became Europe's largest supplier of pipeline gas after Russia's invasion of Ukraine in February 2022.
Arabian Post
an hour ago
- Arabian Post
US Stocks Tumble as Inflation Surge Disrupts Rally
US stocks experienced a notable decline on Thursday after a surge in wholesale inflation sent tremors through the market, putting an abrupt halt to a months-long rally that had propelled major indices to record highs. The Producer Price Index, a critical measure of wholesale inflation, posted its sharpest rise in three years, spooking investors and raising concerns about the resilience of the broader economy. The PPI climbed 0.7% in July, a jump that far exceeded economists' forecasts, prompting investors to reconsider the trajectory of the economic recovery. Analysts had anticipated a more modest 0.2% increase, making the larger-than-expected rise in wholesale prices a significant surprise. This spike in prices points to persistent inflationary pressures, particularly within the supply chain, which have increasingly affected the cost of goods and services. The market response was swift, as Wall Street indices shed points, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all closing lower. The sell-off, which affected a wide range of sectors, was seen as a reaction to fears that inflation could hinder the Federal Reserve's plans for economic normalisation. Central bank officials had previously signalled that they would continue to ease monetary policy until inflation showed signs of stabilisation, but this latest inflation report has raised doubts about whether the Fed might need to act sooner than expected. ADVERTISEMENT Key sectors, including technology and consumer discretionary, saw significant drops, reflecting investor jitters about rising input costs and their potential impact on corporate earnings. While higher inflation is typically associated with increased costs for companies, which can erode profits, there is also concern that inflation could lead to higher interest rates if the Federal Reserve takes a more aggressive stance on tightening monetary policy. Beyond the immediate reaction in stock markets, the PPI data is also a reminder of the ongoing supply chain challenges that continue to affect businesses and consumers. Supply bottlenecks, which have plagued industries ranging from electronics to automobiles, are contributing to inflationary pressures that are being felt across the economy. This persistent inflation is also compounded by soaring energy prices, which further strain household budgets and impact consumer confidence. The immediate market sell-off on Thursday followed a series of market gains that had been driven by optimism over a swift economic recovery and strong corporate earnings. Investors had been willing to overlook inflation concerns, confident that the economy would remain strong and that the Federal Reserve would maintain accommodative policies. However, Thursday's PPI data served as a stark reminder of the risks that still exist, even as the economy shows signs of recovery. Market participants are now closely monitoring upcoming economic data, including consumer price indices and employment reports, for further signs of inflationary trends. The Fed's next moves remain a key focus, with many investors wondering if the central bank will begin tapering its bond purchases or raise interest rates sooner than previously expected. Some analysts believe that while inflation may continue to rise in the short term, it is likely to stabilise over the long term as supply chains gradually recover and energy prices level off. However, others remain concerned that the combination of elevated inflation and the ongoing economic recovery could create a 'stagflationary' environment, where growth slows while inflation remains stubbornly high.
Khaleej Times
2 hours ago
- Khaleej Times
Al Marwan Development breaks ground on Hawa Residences in Sharjah
Al Marwan Development, a major developer in Sharjah, has launched Hawa Residences in Tilal City. 'Hawa Residences is a milestone in our mission to redefine modern living,' said Majd Al Zaiem, Executive Director of Al Marwan Development. 'With every project, we uphold a tradition of meticulous planning, superior craftsmanship, and a deep respect for community. This is more than construction, it's about shaping the places where people's lives unfold.' Recommended For You Situated on an 88,400 square-foot plot, Hawa Residences rises over four designed floors, offering 268 apartments ranging from stylish studios to one-, two-, and three-bedroom homes. Each residence is defined by panoramic windows, private balconies, premium built-in wardrobes, and finishes hand-selected for elegance and durability. Residents will enjoy a lifestyle enriched by three landscaped courtyards, a large swimming pool, a children's play area, a serene Zen Garden, and covered parking for 282 vehicles. The development features 18 curated retail outlets, blending boutique shopping, gourmet dining, and everyday conveniences into a lively promenade. Hawa Residences is just 2 minutes from the Masaar track, 3 minutes from Victoria International School of Sharjah, 5 minutes from the Sharjah Grand Mosque, 14 minutes from Sharjah International Airport, 25 minutes from Dubai International Airport, and 6 minutes from the Dubai–Sharjah border, offering residents both peace and accessibility. The project is set for completion in the second half of 2028. webteam@
