Market hype over the Fed’s interest rate position is tempering: The melt up in the financial markets that accompanied statements made by the chair of the Federal Reserve last week stuttered in the week’s first day of trading yesterday, with stocks falling, US yields rising, and gold falling back from record highs. Risk assets soared last week on hopes that the US central bank would begin to cut interest rates sooner than expected.

Oil resumes slide on supply-cut scepticism: Oil traders yesterday continued to pour cold water on the fresh voluntary supply cuts announced by OPEC+ last week, with Brent and US crude futures both falling back during trading. Brent closed the session 1.7% lower while WTI lost 2.0% as traders expressed doubts that the measures would be enough to support prices.

ICYMI- Several members of the alliance of oil producing countries last week voluntarily agreed to remove c. 2.2 mn barrels per day from the global market in 1Q 2024, with Russia committing to an additional 500k bpd cut and Saudi Arabia rolling over its 1 mn bpd reduction into 2024.

ADX

9,539.1

-0.2% (YTD: -6.6%)

DFM

3,987.7

-0.1% (YTD: +19.5%)

Nasdaq Dubai UAE20

3806.9

-0.41% (YTD: -5.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5.1% o/n

9.3% 1 yr

TASI

11,191.4

-27.6% (YTD: -6.8%)

EGX30

25,265

+2.8% (YTD: +73.1%)

S&P 500

4,570

-0.5% (YTD: +19.0%)

FTSE 100

7,513

-0.2% (YTD: +0.8%)

Euro Stoxx 50

4,415

-0.1% (YTD: +16.4%)

Brent crude

USD 78.03

-1.1%

Natural gas (Nymex)

USD 2.69

-4.3%

Gold

USD 2,042.20

-2.3%

BTC

USD 42,072

+5.6% (YTD: +153.2%)

THE CLOSING BELL-

The DFM fell 0.1% yesterday on turnover of AED 76.36 mn. The index is up 19.5% YTD.

In the green: International Financial Advisors (+14.0%), Al Firdous Holding (+2.1%) and Dubai Islamic Ins. and Reins. (+2.0%).

In the red: Orascom Construction (-6.7%), Takaful Emarat (-1.3%) and Mashreq Bank (-1.2%).

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