Mideast Stocks: #UAE stock markets mixed amid uncertainty over Fed policy

Mideast Stocks: UAE stock markets mixed amid uncertainty over Fed policy

Stock markets in the United Arab Emirates were mixed on Friday amid uncertainty over the U.S. Federal Reserve's monetary policy. Data on Wednesday showed cooling U.S. consumer price inflation, prompting markets to price in at least two interest rate cuts this year. However, the optimism soon fizzled out as a latest report showed the U.S. labour market remains tight, while central bankers remain cautious about inflation.

Most Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and they generally follow the Fed's policy moves. In Dubai, the main share index fell 0.4%, extending declines to a fourth session in a row, mostly dragged down by property and utility stocks. Blue-chip developer Emaar Properties dropped 1.4%, while Emirates Central Cooling Systems was down 2.6%.

Dubai stock market continued its negative trajectory and could remain exposed to some downside risks although it could stabilise after a series of price corrections, George Khoury global head of research at CFI, said. Abu Dhabi's benchmark index closed flat, with the emirate's largest lender First Abu Dhabi Bank easing 0.5%. Conglomerate International Holding Co was up 0.4%.

Both Dubai and Abu Dhabi indexes posted weekly losses of 2.5% and 0.5%, respectively.