Gulf stock prices mixed as investors, oil companies and traders weigh Powell probe and Fed outlook
Gulf equities traded mixed on Monday morning as oil prices climbed. Investors weighed the possible impact on interest rates and the dollar of a criminal?indictment against Federal Reserve Chair Jerome Powell.
Oil, which is a major catalyst for Gulf markets rose on concerns about supply after the escalating Iranian protests. However, efforts to restart Venezuelan imports and expectations that this year's market will be oversupplied capped these moves.
Saudi Arabia's benchmark index rose 0.6% with broad-based gains led by materials and real estate.
Saudi Arabian Mining Co rose by 4.7%, and Dar Al Arkan Real Estate gained 3.6%. Dar Global's international arm announced on Sunday that it would launch two Trump luxury projects with a combined worth of $10 billion in Riyadh, and Jeddah, according to CEO Ziad Elchaar.
The Qatari benchmark Index edged up by 0.2%, with support from?Dukhan Bank up 1.1% and Qatar Aluminum Manufacturing Company up 1%.
Dubai's benchmark index fell 0.3% due to losses in industrial, financial and real estate stocks. Emaar Properties dropped 1%, and Dubai Investments declined 1.7%.
The benchmark index in Abu Dhabi fell 0.2%. Alpha Dhabi Holding dropped 1%, ADNOC Gas fell 1.2% and ESG - Emirates Stallions Group rose by 2.8% following the signing of development agreements for residential towers with Rotana Hotel & Resorts valued at about 900 millions dirhams ($245million).
Powell claimed on Sunday that the Trump administration threatened him with a criminal investigation and issued grand jury subpoenas for congressional testimony he provided last summer about a Fed building renovation project. Powell described this as a "pretext", to 'pressure the central banks to lower rates.
The odds of the Fed cutting rates by a quarter point in March are now down to around 26.5%.
Gulf markets are often influenced by changes in U.S. interest rate expectations as most regional currencies pegged to the US dollar.
(source: Reuters)
