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Stocks in the United Arab Emirates ended higher on Friday amid speculation that the Federal Reserve is nearing the end of its monetary policy tightening cycle. Investors are betting the Fed will only hike rates one more time in its rate hike campaign after U.S. producer price data and labor market data showed cooling inflation on Thursday.
This came after Wednesday’s CPI data showed US consumer prices edged up in March. Most GCC countries, including the United Arab Emirates, have their currencies pegged to the dollar and closely monitor the Federal Reserve’s policy moves, leaving the region directly exposed to monetary tightening in the world’s largest economy.
Dubai’s benchmark rose 0.1 percent, helped by a 0.8 percent gain in blue-chip developer Emaar Properties. The index rose 2.4 percent for a fourth straight week, its biggest weekly gain since September. However, losses in the index were limited by a 1.7 percent drop in Salik as the toll operator traded ex-dividend.
In Abu Dhabi, the index ended 0.7 percent higher, with International Holdings Group up 0.8 percent. Oil prices – the main catalyst for Gulf financial markets – rose after Western energy regulators said global demand was expected to rise to a record high this year as consumption in China recovered.
- Abu Dhabi up 0.7% to 9,623
- Dubai up 0.1% to 3,492
(Reporting by Ateeq Shariff, Bengaluru; Editing by Shailesh Kuber)
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