Gulf markets rise as investors look past fed concerns; Saudi extends gains, gold hits one-week high amid geopolitical tensions – APM Capital Market Report

GCC market

Stock markets in the Gulf ended higher on Tuesday as investors brushed aside worries about the U.S Federal Reserve interest rate trajectory and volatile oil prices, although the Qatar index fell with a tepid performance across most sectors.

Dubai’s benchmark stock index gained 0.4% after a loss the previous session, with most sectors in the green. Dubai Islamic Bank gained 2.1% and Emaar Properties climbed 3%.

The Abu Dhabi benchmark index also rose 0.4% with conglomerate International Holding adding 1% and Phoenix Group gaining 1.5%.

Saudi Arabia’s benchmark stock index was up for a third consecutive session ending 0.4% higher with Al Rajhi Bank, the world’s largest Islamic lender, rising 2% and Saudi Electricity Co (SEC) gaining 1.6%.

Commodities

Crude futures settled a bit higher on Tuesday as traders tracked developments in the Russia-Ukraine war that looked to raise the risk of oil supply disruptions from one of the world’s largest producers.

West Texas Intermediate crude for December delivery rose 23 cents, or 0.3%, to settle at $69.39 a barrel on the New York Mercantile Exchange after climbing 3.2% on Monday.

January Brent crude, the global benchmark, climbed by a penny, or less than 0.1%, to end at $73.31 a barrel on ICE Futures Europe.

Gold prices climbed for a second consecutive session on Tuesday, hitting a one-week high as mounting Russia-Ukraine tensions sparked a rush for safe-haven assets, while investors awaited key signals on the Federal Reserve’s interest rate plans.

Spot gold rose 0.63% to $2,626.53 per ounce, hitting its highest level since November 11. US gold futures gained 0.6% to $2,637.00 per ounce.

Wallstreet market

In a see-saw day, U.S. stocks finished mostly higher on Tuesday as investors attempted to shake off concerns about rising geopolitical tensions involving Russia and Ukraine.

The Dow Jones Industrial Average dropped 120.66 points, or 0.3%, to end at 43,268.94. The blue-chip index has fallen for four consecutive trading days, its longest losing streak since Oct. 25 according to Dow Jones Market Data.

The S&P 500 rose 23.36 points, or 0.4%, ending at 5,916.98. The Nasdaq Composite advanced 195.66 points, or over 1%, to finish at 18,987.47.

US 10-year yields finished at 4.378% respectively, according to Dow Jones Market Data. Those are the lowest levels since Nov. 8.

European market

On Tuesday, Europe’s main stock index touched its lowest level in three months, as escalating geopolitical tensions, fueled by Russia lowering its threshold for a nuclear strike, spurred investors to head to safer havens.

The pan-European Stoxx 600 closed 0.4 percent lower after earlier in the session, it fell 1 percent to its lowest point since Aug 8. It logged a third straight day of losses.

The FTSE 100 Index trimmed the sharp decline to close 10.30 points or 0.13% today to 8099.02. In Frankfurt, the DAX Index dropped 130 points or 0.68 percent to 19,033.

Asian market

Asian markets rose Tuesday after a broadly positive day on Wall Street, with focus turning to the upcoming release of tech giant Nvidia’s earnings, while traders also kept tabs on Donald Trump’s picks for his new administration.

Japan’s benchmark Nikkei average closed up 0.51% at 38,414.43 on Tuesday, while the broader Topix gained 0.60% at 2,707.99.

The Hang Seng increased 87 points or 0.4% to end at 19,664 on Tuesday, marking its second session of gains amid a positive sentiment from Wall Street Monday. China’s Shanghai Composite Index rallied 0.67 percent to finish trading at 3,346.01.

FX 

The dollar index rose on Tuesday after an initial boost to safe-haven currencies such as the greenback, Swiss franc and yen prompted by an announcement by Russia that it would lower its threshold for a nuclear strike faded following comments by Russian and U.S. officials.

The dollar index, which measures the greenback against a basket of currencies, rose 0.03% to 106.25 after reaching a high of 106.63 in the session, with the euro down 0.12% at $1.0586.

The yen was unchanged at 154.68 per dollar after rising as much as 0.91% against the greenback. The Japanese currency was last up 0.11% to 163.74 against the euro after strengthening to a six-week high of 161.50.

Against the Swiss franc, the dollar edged up 0.02% to 0.883 after earlier falling as much as 0.32% on the day.

Last Updated on 3 weeks by News Desk 1