Askume, Sep 9 – Major stock markets in the Bay Area fell in early trade on Monday as key US inflation data is set to be released later this week, which may give some indication of when the Federal Reserve may be able to clarify inflation data this month.
Investors analyzed last week’s mixed US employment data and comments from Federal Reserve officials that showed a weak labor market, but not enough to justify a 50 basis point rate cut.
The US inflation report released on Wednesday will be a key indicator that could change market expectations for the outcome of the Federal Reserve’s September 17-18 meeting.
The monetary policies of the six Gulf Cooperation Council (GCC) members, including the UAE, are generally guided by the Federal Reserve’s policy decisions, as most currencies in the region are pegged to the US dollar.
Saudi Arabia’s benchmark index (.TASI) fell 0.2%, with Al Taiseer Group (4143.SE) down 0.3% and the country’s biggest bank, the National Bank of Saudi Arabia (1180.SE) down 0.4%.
The state’s real gross domestic product fell an annualised 0.3% in the second quarter, according to estimates released by the government statistics department on Sunday.
On the other hand, telecoms company Etihad Etisalat (7020.SE) rose 0.9% after signing a hosting deal with Red Bull Action.
Dubai’s main stock index (.DFMGI) fell 0.1%, with gains capped by a 1.7% drop in top bank Emirates National Bank (ENBD.DU) .
The Abu Dhabi index (.FTFADGI) fell 0.7%.
The Qatar benchmark index (.QSI) however rose 0.1% in volatile trade .
