Saudi Stocks Trade Flat Ahead of Fed Rate Decision

Saudi stocks traded flat on Monday as investors focused on the US Federal Reserve's rate decision due on Wednesday.

The Tadawul All Share Index (TASI) rose by a mere 0.02%, ignoring oil's decline in value and its impact on global inflation and rate expectations.

ING, a Dutch bank, warned that the Fed's Chair Kevin Warsh is skeptical of 'forward guidance', which could lead to a 'meeting-day surprise' and drive traders to buy US dollars as a hedge.

This has implications for Saudi assets, as the riyal is pegged to the dollar. Oil prices eased after Iran and the US paused their back-and-forth strikes, with reports suggesting Tehran was not ready to restart peace talks.