Agencies
New York
Stock markets in the Gulf ended mixed on Tuesday following a decline in oil prices as investors awaited the outcome of the US central bank’s meeting.
Crude prices - a catalyst for the Gulf’s financial markets - hit their lowest levels since early June over concerns about Chinese demand and as the market shrugged off the risk of conflict escalating in the Middle East.
A raft of disappointing economic news out of China has shaken markets recently. China’s manufacturing activity likely shrank for a third month in July, a Reuters poll showed on Monday.
Saudi Arabia’s benchmark index dropped 0.5 percent, with aluminium products manufacturer Al Taiseer Group declining 4 percent and oil giant Saudi Aramco retreating0.9 percent.
Dubai’s main share index dropped 0.6 percent, weighed down by a 7.2 percent decline in Mashreqbank and a 1.7 percent decrease in utility firm Dubai Electricity and Water Authority.
However, Dubai Financial Market, which operates the Dubai exchange, advanced 1.6 percent after reporting a higher quarterly net profit.
In Abu Dhabi, the index finished flat. Markets are pricing almost no chance of a US rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the US dollar.
In Qatar, the index dropped 0.2 percent, with telecom operator Ooredoo losing 1.1 percent, ahead of itsearnings announcement.
Outside the Gulf, Egypt’s blue-chip index gained 0.5 percent, led by a 1.7 percent rise in Talaat Mostafa Group.