By Ateeq Shariff
Aug 27 (Reuters) - Stock markets in the Gulf ended mixed
on Wednesday as concerns persisted about the U.S. Federal
Reserve's independence following President Donald Trump's
attempt to dismiss Fed Governor Lisa Cook.
Trump said he was removing her over alleged improprieties in
obtaining mortgage loans, a step that could test the boundaries
of presidential power over the U.S. Fed.
Cook said Trump has no authority to fire her from the
central bank, and she will not resign.
Saudi Arabia's benchmark index dropped 0.6%, weighed
down by a 1% fall in Al Rajhi Bank and 2.8% decline in
the country's biggest lender Saudi National Bank.
In Qatar, the index retreated 0.6%, hit by a 1.6%
fall in Qatar Islamic Bank.
Oil prices - a catalyst for the Gulf's financial markets -
steadied, after falling in the previous session, as investors
watched for developments in the Ukraine war and weighed an
industry report showing a drop in U.S. inventories and new U.S.
tariffs on India.
Dubai's main share index added 0.3%, helped by a 1%
gain in blue-chip developer Emaar Properties.
In Abu Dhabi, the index was up 0.2%.
The focus shifts to the Personal Consumption Expenditures
Price Index, the Fed's preferred inflation gauge, due on Friday,
for clues on the interest rate path after dovish remarks from
Powell at Jackson Hole symposium last week.
Markets have priced in an 87% chance of a quarter-point rate
cut at the Fed's September 17 policy meeting, according to CME
FedWatch Tool.
The Fed's stance holds implications for Gulf economies,
where most currencies are pegged to the U.S. dollar, making it
an anchor for regional monetary stability.
Outside the Gulf, Egypt's blue-chip index advanced
0.9%, led by a 4.1% jump in tobacco monopoly Eastern Company (EML)
.
Egypt's central bank is likely to cut its key interest rates
by 100 basis points on Thursday to support growth as inflation
cools, a Reuters poll showed.
SAUDI ARABIA fell 0.6% to 10,808
Abu Dhabi rose 0.1% to 10,182
Dubai gained 0.4% to 6,127
QATAR dropped 0.6% to 11,339
EGYPT up 0.9% to 35,676
BAHRAIN was down 0.2% to 1,926
OMAN added 0.4% to 5,034
KUWAIT eased 0.3% to 9,153
(Reporting by Ateeq Shariff in Bengaluru, Editing by Louise
Heavens)
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