Sign in
The Fed is in no hurry to cut rates: US Federal Reserve Chief Jerome Powell is widely expected to deliver a hawkish message on interest rates to the US House and Senate in a semiannual monetary policy testimony on Wednesday and Thursday, writes Bloomberg.
The why: The Fed is worried that the “danger of moving too soon is that the job’s not quite done,” Powell told CBS in early February (watch, runtime: 13:20). US inflation data released later in the month validated his concerns that inflationary pressures persist, showing that underlying inflation rose in January by the most in eight months, up 0.4% from the month before and 2.8% on an annual basis, according to the Fed’s preferred core personal consumption expenditures price index.
Refresher: The Fed embarked on an aggressive monetary tightening policy in March 2022 in the wake of soaring inflation triggered by the Ukraine war. Interest rates are currently at a 22-year high at 5.25-5.5%, which marks their highest level since 2001.
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ADX |
9,278 |
+0.3% (YTD: -3.1%) |
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DFM |
4,356 |
+1.1% (YTD: +7.3%) |
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Nasdaq Dubai UAE20 |
3,753 |
+0.4% (YTD: -2.3%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.1% o/n |
5.3% 1 yr |
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TASI |
12,555 |
-0.6% (YTD: +4.9%) |
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EGX30 |
29,058 |
+0.3% (YTD: +16.7%) |
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S&P 500 |
5,137 |
+0.8% (YTD: +7.7%) |
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FTSE 100 |
7,683 |
+0.7% (YTD: -0.7%) |
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Euro Stoxx 50 |
4,895 |
+0.4% (YTD: +8.3%) |
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Brent crude |
USD 83.84 |
+0.4% |
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Natural gas (Nymex) |
USD 1.89 |
+3.1% |
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Gold |
USD 2,092.70 |
-0.1% |
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BTC |
USD 62,836.83 |
+1.4% (YTD: +48.6%) |
THE CLOSING BELL-
The DFM rose 1.1% yesterday on turnover of AED 412.7 mn. The index is up 7.3% YTD.
In the green: Commercial Bank of Dubai (+11.6%), Orascom Construction (+10.0%) and Dubai Islamic Ins. and Reins. (+8.3%).
In the red: SHUAA Capital (-9.2%), Emirates NBD (-5.7%) and National Central Cooling (-2.6%).
Over on the ADX, the index closed up 0.3% on turnover of AED 831 mn. Meanwhile Nasdaq Dubai closed up 0.4%.
CORPORATE ACTIONS-
Abu Dhabi Islamic Bank (ADIB) will pay AED 2.59 bn in dividends for 2023, amounting to 71 fils per share, according to an ADX disclosure (pdf). The announcement is an increase from the previous year’s dividend of 49 fils per share and represents 49% of the bank’s net income last year, which stood at AED 5.25 bn in 2023.
