April 13 (Reuters) – Gulf stock markets were mostly mixed on Thursday on a possible recession in the United States, the world’s largest economy, although the Egyptian stock market rose to its highest level since mid-February.
The US consumer price index (CPI) rose 0.1% last month, below economists’ expectations for a 0.2% rise and up from a 0.4% rise in February, raising expectations that the Federal Reserve will likely be allowed to halt interest rate hikes after a potential hike.
Fed officials assessing the potential impact of bank stress forecast a “mild recession” later this year.
Dubai’s main stock index (.DFMGI) closed 0.3% lower after hitting its high for the year, dragged down by a 2.3% loss in Emirates NBD Bank, the leading lender, (ENBD.DU). .
The market in Dubai faced some downward pressure as traders looked to lock in gains, particularly after mention of Fed minutes about the potential for a US recession weighed on trader sentiment, said Fadi Reyad, Chief Market Analyst at CAPEX.com.
Outside the Gulf, Egypt’s blue chip index (.EGX30) rose 5.6%, boosted by a 14.5% gain in Commercial International Bank (COMI.CA).
World Bank President David Malpass said Thursday the bank is ready to support Egypt but it is important to see improvements in the business climate.
The Saudi Arabian benchmark index (.TASI) recouped early losses to close 0.3% higher, while Retal Urban Development Co (4322.SE) gained 0.9%.
Oil prices – a key catalyst for Gulf financial markets – were resilient as the market weighed the prospect of tight supply against a possible recession in the United States.
In Qatar, the index (.QSI) slipped 1.3% with most constituents in negative territory.
Reporting by Ateeq Shariff in Bengaluru
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