The major indices on Wall Street opened lower on Wednesday after U.S. Federal Reserve Chairman Jerome Powell reiterated the commitment to reducing inflation to two percent, raising concerns about further tightening measures. The Dow Jones Industrial Average fell by 63.31 points, or 0.19 percent, to 33,990.56 points at the opening. The S&P 500 index opened down by 8.70 points, or 0.20 percent, at 4,380.01 points, while the Nasdaq composite dropped by 46.43 points, or 0.34 percent, to 13,620.87 points.
In the Gulf region, most stock markets closed higher on Wednesday, as investors disregarded concerns stemming from indications of tighter monetary policy following Powell's testimony to Congress. The main index of the Saudi market closed up by 0.3 percent, driven by a 1.3 percent rise in shares of Dr. Suleiman Al Habib Medical Services Group and a 3.9 percent increase in shares of the Cooperative Insurance Company. The Flexible Murabaha financing share closed up by 2.3 percent in its first trading session, having surged by 20.5 percent during the day.
Abu Dhabi’s index continued to rise for the fourth consecutive session, increasing by 0.3 percent, supported by a 2.1 percent rise in shares of First Abu Dhabi Bank, the largest bank in the UAE. Shares of Abu Dhabi Ship Building rose by 1.2 percent, and Abu Dhabi National Energy Company (TAQA) rose by 0.9 percent. TAQA announced on Wednesday its intention to acquire "SWS Holding" for 1.7 billion dirhams (462.91 million dollars).
The Dubai index ended a two-day losing streak to close up by 0.2 percent, supported by an increase in shares of Emaar Properties by 1.2 percent and Air Arabia by 2.1 percent. The Emirates NBD Bank, the largest bank in Dubai, increased by 0.7 percent.
In Qatar, the index fell by 0.2 percent for the second consecutive session. Shares of Qatar National Bank, the largest bank in the region, decreased by 0.6 percent, while shares of Qatar Islamic Bank dropped by 1 percent.
Outside the Gulf region, the Egyptian benchmark index declined for the third consecutive session, closing down by 1.2 percent, as all listed sectors fell. Shares of Commercial International Bank and Abu Qir Fertilizers and Chemicals fell by 0.7 percent and 2.8 percent respectively, while shares of Eastern Company dropped by 1.8 percent.
A Reuters survey indicated that the Central Bank of Egypt is expected to keep overnight interest rates unchanged tomorrow, Thursday. Powell is scheduled to testify about monetary policy on Wednesday and Thursday. Markets anticipate a roughly 78 percent probability of raising interest rates to a range between 5.25 percent and 5.5 percent next month, which is likely to mark the end of the tightening cycle in the United States. Most Gulf countries peg their currencies to the U.S. dollar and typically follow the monetary policy of the United States.
