Fairview HK: On dovish Fed expectations, most Gulf markets extended gains

CENTRAL, Hong Kong - Aug. 3, 2023 - PRLog -- A lower measure of consumer inflation in the United States persuaded investors that the Federal Reserve might deliver its last rate rise of the monetary policy cycle this month.

Most Gulf Cooperation Council nations, notably Qatar, Saudi Arabia, and the United Arab Emirates, have linked their currencies to the US dollar and typically follow the Fed's policy movements, exposing the area to any U.S. monetary policy move.

Saudi Arabia's benchmark index (.TASI) rose 0.6%, headed by Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 2.1% and Saudi Awwal Bank (1060.SE) rising 5.3%.

However, the kingdom's crude oil exports dropped to a 19-month low in May, according to statistics from the Joint Organizations statistics Initiative (JODI) released on Monday, as low-cost Russian oil enticed several major Asian consumers.

Dubai's main share index (.DFMGI) rose 0.2%, extending advances to a sixth session, with Emirates Central Cooling Systems (EMPOWER.DU) closing 1.6% higher.

In Abu Dhabi, the index (.FTFADGI) rose 0.1%.

Oil, on the other hand, fell more than 1% on Monday after weaker-than-expected Chinese economic growth fueled concerns about demand in the world's second-largest oil consumer, while a partial restart of halted Libyan output also weighed on prices.

Fairview HK Limited is one of the foremost privately owned Asia-Pacific orientated, boutique wealth management firms in Hong Kong. We offer our services to a selected group of families, family offices, institutions and fund managers, you may visit our website https://fairviewhk.com/ or contact us via email.