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Sept 2 (Reuters) – Dubai stocks extended losses on Friday, recording their first weekly loss in four weeks, on fears that a more aggressive rate hike by the Federal Reserve could push the economy into recession, even as the Abu Dhabi index bucked the trend Transactions are higher.
U.S. Federal Reserve officials on Tuesday reiterated their support for further rate hikes to tame inflation, with the influential New York Fed president saying the central bank may need to raise its policy rate “just above” 3.5 percent and keep it there through the end of 2023. . read more
Most GCC countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and generally follow the Fed’s policy moves, leaving the region directly affected by U.S. monetary tightening.
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major stock indexes (.DFMGI) Shares in Middle East travel and tourism hub Dubai slip 0.6%, Mashreq Bank (MASB.DU) Plunging around 10% while top lender Emirates NBD (ENBD.DU) It fell 0.7%.
In Abu Dhabi, the index (.FTFADGI) It rose 0.4%, snapping four sessions of losses, helped by a 0.2% rise in International Holdings Group (IHC.AD).
Abu Dhabi Exchange rebounded in response to oil price reversal.
“A stronger crude oil price could help the market recover,” said Daniel Takieddine, chief executive of MENA BDSwiss.
Crude oil prices climbed on expectations that OPEC+ will discuss production cuts at its Sept. 5 meeting, although concerns over China’s COVID-19 restrictions and a weakening global economy continued to cap gains.
Brent crude futures were up $2.01, or 2.2%, at $94.37 a barrel by 0900 GMT.
However, the index posted its biggest weekly drop of 3.2% since mid-May.
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Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber
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