Gulf stocks subdued as investors eye Fed minutes

Stock markets across most of the Gulf region opened lower on Wednesday, mirroring a decline in oil prices and with investors awaiting details from the US Federal Reserve’s latest policy meeting, Reuters reported.

Oil prices extended their decline for a third consecutive session. Brent crude futures fell by 1.36 per cent to $81.75 a barrel by 07:48 GMT, dampening investor confidence.

Abu Dhabi’s benchmark index dipped 0.4 per cent, with major declines in Aldar Properties down 2.3 per cent and Alpha Dhabi Holding 2.6 per cent lower.

Dubai’s main index followed suit, slipping 0.3 per cent. Losses were concentrated in the finance, real estate, and industry sectors, with Parkin Co falling 1.1 per cent and Emirates NBD, Dubai’s largest lender, dropping 1.2 per cent.

Qatar’s benchmark index edged down 0.1 per cent, pressured by a 1.3 per cent decline in United Development Co and a 1.1 per cent loss in Qatar Navigation.

Saudi Arabia’s index remained largely unchanged, with some notable movers. Etihad Etisalat and Saudi Electricity lost 2.1 per cent and 2 per cent respectively, while ACWA Power rose 1.5 per cent and Savola Group gained 2.2 per cent.

Investors are eagerly anticipating the release of the Fed’s meeting minutes on Wednesday. Some Fed officials suggested on Tuesday that the US central bank might wait a few more months to assess inflation before considering a rate cut.

Most Gulf currencies are pegged to the US dollar, so changes in the US monetary policy impact Saudi Arabia, the United Arab Emirates, and Qatar. The Fed minutes could influence future interest rate decisions and economic activity in the Gulf region.