Gulf markets muted as earnings disappoint, Fed signals caution on rates
The prospect of U.S. rates staying higher for longer clouded investor sentiment across Gulf markets, where monetary policy tends to track the Fed due to currency pegs.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.4%, dragged down by broad-based sectoral declines as a string of underwhelming earnings weighed on sentiment.
Shares of Yamama Cement (3020.SE), opens new tab fell more than 1% after its second-quarter earnings missed expectations, while Nayifat Finance (4081.SE), opens new tab dropped 2.4% following a nearly 60% year-on-year plunge in Q2 profit.
National Gas and Industrialization Co (2080.SE), opens new tab and Saudi Telecom (7010.SE), opens new tab each shed 1.6% as their shares began trading ex-dividend.
Meanwhile, flash estimates from the General Authority for Statistics showed Saudi Arabia's real GDP rose 3.9% in the second quarter compared with a year earlier, supported by growth in the non-oil sector as the kingdom continues efforts to diversify its economy.
Dubai's main share index (.DFMGI), opens new tab slid 0.5%, pulling back from a near two-decade peak in the previous session, led by a 3% fall in Mashreqbank (MASB.DU), opens new tab after posting a 17% year-on-year decline in second-quarter earnings.
Tecom Group (TECOM.DU), opens new tab was down 1.5% ahead of the release of its quarterly earnings later in the day.
The Abu Dhabi index (.FTFADGI), opens new tab was little changed and Qatar's benchmark (.QSI), opens new tab also held steady as investors refrained from placing bigger bets ahead of key earnings announcements.
Qatari telecoms firm Ooredoo (ORDS.QA), opens new tab outperformed, gaining 1.6% after reporting positive second-quarter results and holding its full-year guidance steady.
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