Global Markets End on a Cautious Note: UAE Indices Diverge and Gold Faces Profit-Taking – APM Capital Market Report
Friday’s closing bell brought a patchwork of results across the world’s major stock indices, as economic crosswinds and investor sentiment tugged prices in multiple directions. While some markets found enough support to edge upward, others experienced modest declines or steeper sell-offs, closing out the week on a cautious note.
GCC market
Dubai and Abu Dhabi Stock Markets Diverge Amid Mixed Sector Performance: The UAE’s stock markets closed with contrasting results on Friday as Dubai’s main index extended its rally, buoyed by gains in the real estate and industrial sectors, while Abu Dhabi’s index dipped, weighed down by losses in key financial and telecom stocks.
Dubai Financial Market: Dubai’s main index rose 0.4%, marking its third consecutive session of gains.
Emaar Properties: Up 1.5%, continuing its strong performance on robust investor sentiment.
Parkin Company: Gained 1.9%, with the state-owned parking operator seeing heightened buying interest.
Abu Dhabi Securities Exchange: Abu Dhabi’s benchmark index slipped 0.1%, ending a two-session winning streak.
First Abu Dhabi Bank (FAB): Dropped 1.4%, dragging on the index as UAE’s largest lender faced profit-taking.
Emirates Telecom Group: Declined 0.9%, reflecting mixed investor sentiment.
GCC Gold
Gold prices in Dubai edged lower during early trade on Friday, mirroring a global trend as profit-taking weighed on the precious metal.
According to data from the Dubai Jewellery Group, prices for all major gold variants decreased:
24K Gold: Fell Dh1 to Dh325.5 per gram.
22K Gold: Opened at Dh301.25 per gram.
21K Gold: Dropped to Dh291.75 per gram.
18K Gold: Declined to Dh250.0 per gram.
Commodities
Oil Prices headed for their first weekly rise since the end of November, as additional sanctions on Russia ratcheted up supply worries, while a surplus outlook weighed on markets. WTI futures finished up 1.3% to $70.84 per barrel, with Brent crude also up to $74.16.
Gold prices fell on Friday after bullion hit a more than five-week high in the previous session and as the U.S. dollar gained, but prices were on track for a weekly rise on expectations of a Federal Reserve rate cut next week.
Spot gold was down 0.8% at $2,658.89 per ounce, as the U.S. dollar hovered near its highest in more than two weeks. USD/ Bullion hit its highest since Nov. 6 on Thursday and has risen nearly 1% so far for the week. U.S. gold futures fell 1.1% to $2,678.50.
Wallstreet market
U.S. stock markets closed with mixed results as investors looked beyond equities to other asset classes, including Bitcoin, oil, and U.S. Treasury yields. The U.S. dollar strengthened, particularly against the Japanese yen, while tech giant Broadcom’s sharp rise pushed its market capitalization above $1 trillion for the first time.
S&P 500: The S&P 500 slipped fractionally, ending the session at 6,051.09, down 0.16 points (-0.00%). Trading volume was strong, with 2.418 billion shares exchanged. Tech sector losses weighed on the index, although gains in defensive sectors like utilities and consumer staples helped mitigate declines.
Dow Jones Industrial Average (DJI): The Dow declined 86.06 points (-0.20%) to close at 43,828.06. Industrial and financial stocks struggled, overshadowing modest gains in the healthcare sector. Investor caution persisted, fuelled by concerns about elevated bond yields and the future trajectory of interest rates.
NASDAQ Composite: The NASDAQ Composite bucked the trend, gaining 23.88 points (+0.12%) to finish at 19,926.72, climbing for the fourth week in a row. Solid quarterly earnings in growth-oriented companies supported the tech-heavy index. Trading volume was robust at 5.259 billion shares, with strong interest in technology and communication sectors.
European market
European stocks closed lower on Friday, snapping a three-week winning streak as disappointing economic data from the UK and Germany weighed on sentiment.
United Kingdom: The FTSE 100 in London edged down 0.14% (-11.43) to settle at 8,300.33.
Declines in the energy and financial sectors contributed to the subdued performance as investors reacted to mixed sector updates.
Germany: DAX P Retreats
Germany’s DAX P slipped 0.10% (-20.35) to close at 20,405.92.
Weakness in the automotive and industrial sectors dragged the index lower, reflecting concerns over Germany’s near-term economic trajectory.
Asian market
Asian markets closed with a mixed performance on Friday, as regulatory pressures and profit-taking weighed on key indices in China and Hong Kong, while Japan’s Nikkei also retreated. However, Singapore’s STI Index managed to eke out a small gain.
- Hong Kong’s HANG SENG INDEX Plummets: The HANG SENG INDEX fell 2.09% (-425.81) to close at 19,971.24. Losses were driven by regulatory headwinds and profit-taking in technology stocks, a sector that has seen heightened volatility recently.
- Mainland China Weaker: The SSE Composite Index in Shanghai declined 2.01% (-69.62) to settle at 3,391.88. Concerns over the region’s near-term economic outlook fueled broad-based selling pressure.
- Japan’s Nikkei 225 Slides: The Nikkei 225 dropped 0.95% (-378.70) to finish at 39,470.44. Profit-taking in large-cap technology and industrial stocks contributed to the index’s decline.
- Singapore STI Inches Higher: The STI Index in Singapore edged up 0.03% (+1.08) to close at 3,810.35. Gains in local banking stocks provided support, offsetting broader market hesitation.
FX
Foreign exchange markets were set to close out Friday’s session with mixed performances across the major currency pairs. The U.S. dollar strengthened against the Japanese yen, but traded in a relatively narrow range against several other counterparts. Investors continued to weigh policy signals from global central banks, with inflation data remaining front and centre in traders’ minds. The US Dollar Index closed at 106.99, adding 0.03 % (+0.04)
Euro Strengthens Modestly: The Euro / U.S. dollar (EURUSD) pair rose 0.28% to close at 1.0494.
Better-than-expected Eurozone economic data provided a temporary boost to the euro, although concerns about inflation in some member states capped further gains.
Dollar-Yen Hits New Highs: The U.S. dollar / Japanese yen (USDJPY) pair surged 0.70% to reach 153.67, gaining +1.07 points on the day. Analysts highlighted the growing policy divergence between the hawkish Federal Reserve and the dovish Bank of Japan as a key driver.
Dollar Edges Higher Against Loonie: The U.S. dollar / Canadian dollar (USDCAD) pair inched up 0.07%, ending at 1.4229. Stable trading reflected limited changes in sentiment amid steady oil prices.
Pound Slides Against Dollar: The British pound / U.S. dollar (GBPUSD) pair declined 0.43% to 1.2618. Uncertainty surrounding the Bank of England’s future rate path prompted profit-taking on sterling’s recent gains, despite stable retail sales data in the U.K.
Swiss Franc Slightly Lower: The U.S. dollar / Swiss franc (USDCHF) pair ticked up by 0.05% to close at 0.8925.
Commodity Currencies Under Pressure
Australian and New Zealand Dollars Dip: The Australian dollar / U.S. dollar (AUDUSD) slipped 0.19%, closing at 0.6356. Similarly, the New Zealand dollar / U.S. dollar (NZDUSD) dropped 0.19% to 0.5756.
Softer commodity prices and concerns over global demand weighed on both currencies.
Last Updated on 6 days by News Desk 1