UAE Stocks Mixed Ahead of Crucial US Inflation Data
The UAE stock market ended in a mixed performance as traders looked ahead to the upcoming US personal consumption expenditures (PCE) inflation report, a key indicator for Federal Reserve interest rate decisions. The UAE dirham is pegged to the US dollar, and local policy rates tend to track US rates to maintain stability.
Research firm Stifel predicts that July's headline PCE will rise 0.1% from June and cool down to 3.6% year-on-year, while 'core' PCE (which strips out food and energy) is expected to be at 0.2% month-on-month and 3.3% year-on-year.
Abu Dhabi's ADX slipped 0.339%, while Dubai's DFM rose 0.552%. Rate-sensitive financials were in focus, with Abu Dhabi Islamic Bank gaining 1.29% after approving a 1.75 billion dirham rights issue to fund growth, and Emirates NBD adding 0.39% after Bank of America Global Research raised its price target.