Mideast Stocks: Gulf markets mixed ahead of key Fed Powell testimony

Mideast Stocks: Gulf markets mixed ahead of key Fed Powell testimony

Stock markets in the Gulf ended mixed on Wednesday, ahead of Federal Reserve Chair Jerome Powell's congressional testimony that could reveal clues on a potential June rate cut. Traders are scouring U.S. economic data and policymakers' speeches to gauge when the Fed would start cutting rates.

Markets are pricing in a 68% chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed. 

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index gained 0.7%, led by a 0.6% rise in Al Rajhi Bank and a 2% increase in Alinma Bank. 

Elsewhere, oil giant Saudi Aramco was up 0.2%. Crude prices - a key catalyst for the Gulf's financial markets - rebounded slightly after four days of declines as signs of supply tightness amid output cuts by major producers overrode demand concerns in China and the U.S.

OPEC+ members led by Saudi Arabia and Russia agreed on Sunday to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, giving extra support to the market.

In Abu Dhabi, the index eased 0.1%. 

Dubai's main share index added 0.1%, helped by a 2.6% increase in Tecom Group.

The Qatari benchmark dropped 0.8%, weighed down by a 5.2% slide in Mesaieed Petrochemical.

The Qatari "market could stabilize after the current price corrections, supported by solid fundamentals and accelerating non-energy sector growth, expansions in output and employment, and improved business expectations in February," George Khoury, Global Head of Education and Research at CFI, said.

Outside the Gulf, Egypt's blue-chip index tumbled 3%, retreating from a record high, with Talaat Mostafa Holding declining 10.6%.

Emirates’s Clark Throws Support Behind Boeing Leadership - Bloomberg

Emirates’s Clark Throws Support Behind Boeing Leadership - Bloomberg

Emirates President Tim Clark threw his support behind Boeing Co.’s leadership as the manufacturer works through a crisis of confidence triggered by a near-catastrophic accident, saying the company understands what needs to be fixed and that the reintegration of a key supplier is a step in the right direction.

“I think Calhoun and his colleagues are on it,” Clark told journalists in Berlin, referring to Boeing Chief Executive Officer Dave Calhoun. “This is so urgent. If we had any issue like this we’d take the company apart, we wouldn’t sleep. You’re expected to do the right thing.”

Clark has said Boeing has one final chance to right the company following the Jan. 5 blowout of a door panel on a 737 Max 9 model during flight. To stabilize the business, Boeing needs to review its governance model and consider enlisting support from what Clark called third parties with expertise in engineering to help Boeing address its manufacturing issues.

“Just get the quality done correctly, it’s what the US government expects, it’s what the flying public expects,” Clark said. “If they haven’t got the message, they’ll never get the message. I think they got the message.”

Most Gulf markets in red ahead of key Fed Powell testimony | Reuters

Most Gulf markets in red ahead of key Fed Powell testimony | Reuters

Major stock markets in the Gulf fell in early trade on Wednesday ahead of congressional testimony from Federal Reserve Chair Jerome Powell to gauge the interest rate cut cycle.

Traders are scouring U.S. economic data and policymakers' speeches to gauge when the Fed would start cutting rates. Markets are pricing in a 68% chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed, as well as 88 basis points of cuts this year.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.

Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, hit by a 6.4% fall in Commercial Bank (CBD.DU), opens new tab and a 0.6% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.

The Qatari benchmark (.QSI), opens new tab declined 0.9%, weighed down by a 1.6% fall in Qatar Islamic Bank (QISB.QA), opens new tab.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, led by a 0.8% rise in Al Rajhi Bank (1120.SE), opens new tab and a 1.1% increase in Saudi Telecom Co (7010.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab added 0.3%.

Crude prices - a catalyst for the Gulf's financial markets - edged higher supported by the announcement on Sunday that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) extended their output cuts of 2.2 million barrels per day until the end of the second quarter.