A trader looks on near electronic boards showing stock market data at Bahrain Bourse after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed/File Photo Acquire Licensing Rights
Sept 12 (Reuters) – Major stock markets in the Gulf fell in early trade on Tuesday with investors focusing on macroeconomic data that could indicate whether interest rates will rise further in the United States.
The U.S. Consumer Price Index (CPI) data, due on Wednesday, is expected to rise 0.6% month-on-month for August, likely taking the year-on-year rate to 3.6%, according to a Wells Fargo research note.
The Federal Reserve is widely expected to leave interest rates unchanged at a policy meeting next week, though views are split over whether the Fed will hike or pause again in November.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index (.TASI) dropped 0.3%, with Dr Sulaiman Al Habib Medical Services (4013.SE) losing 3%, while oil giant Saudi Aramco (2222.SE) declined 0.7%.
Dubai’s main share index (.DFMGI) eased 0.3%, with toll operator Salik (SALIK.DU) losing 1.2%.
In Abu Dhabi, the index (.FTFADGI) was down 0.1%.
Separately, hypermarket chain and mall operator Lulu Group International expects to launch its initial public offering in the first half of 2024, its chairman said on Monday, adding that the company’s shares will be listed in the Gulf.
The Qatari index (.QSI) lost 0.2%, on course to snap four sessions of gains, hit by a 0.9% fall in Qatar Islamic Bank (QISB.QA).
Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman
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