International Business: Dubai bourse extends losses amid fears of recession – Gulf Digital News

International Business: Dubai bourse extends losses amid fears of recession – Gulf Digital News

Dubai’s stock market extended losses yesterday, posting its first weekly loss in four, amid fears that more aggressive rate hikes from the Federal Reserve could push the economy into recession, although the Abu Dhabi index bucked the trend to trade higher.

US Federal Reserve officials on Tuesday reiterated their support for further interest-rate hikes to quell inflation, with the influential chief of the New York Fed saying the central bank will likely need to get its policy rate “somewhat above” 3.5 per cent and keep it there through the end of 2023.

Most Gulf Co-operation Council countries, including the UAE, have their currencies pegged to the dollar and generally follow the Fed’s policy moves, exposing the region to a direct impact from US monetary tightening.

The main share index in Dubai, the Middle East’s travel and tourism hub, dropped 0.6pc, with Mashreq Bank plunging about 10pc, while top lender Emirates was down 0.7pc.

In Abu Dhabi, the index gained 0.4pc, snapping four sessions of losses, helped by a 0.2pc rise in conglomerate International Holding.

The Abu Dhabi bourse rebounded, responding to the reversal in oil prices.

Crude prices climbed on expectations that Opec+ will discuss output cuts at a meeting on Sept. 5, though concerns over