Most Gulf markets retreat ahead of Fed meet; Saudi rebounds

Most Gulf markets retreat ahead of Fed meet; Saudi rebounds

The Fed will announce its latest policy decision on Wednesday, followed by a slew of other central banks, as markets are expecting a smaller 50 basis points hike from the Fed

Dubai’s main share index dipped 0.5 per cent, hit by a 1.9 per cent fall in Emirates NBD Bank.

By Reuters Published: Tue 13 Dec 2022, 6:09 PM

Most stock markets in the Gulf ended lower on Tuesday ahead of a reading of US inflation on the eve of a Federal Reserve policy decision which could set the tone for the year ahead, while the Saudi index rebounded from a 20-month low.

The Fed will announce its latest policy decision on Wednesday, followed by a slew of other central banks, as markets are expecting a smaller 50 basis points hike from the Fed.

But investors are focused is on its forward-looking commentary about monetary policy and the economy.

Most Gulf Cooperation Council countries, including Saudi Arabia, the UAE and Qatar, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to a direct impact from monetary tightening in the world’s largest economy.

In Abu Dhabi, the index dropped one per cent, extending losses for a sixth consecutive session,