Central banks could keep rates higher than expected in 2024: The OECD reckons that central banks will maintain a hawkish monetary policy despite a historic rally in financial markets, according to its most recent Economic Outlook.

What gives? Continuing cost pressures for businesses alongside rising food and energy prices for consumers could drive a tighter monetary policy than is currently projected for 2024, according to the report. Rising geopolitical tensions if the war in Gaza were to persist or become a wider conflict are also a concern, the OECD said.

Bullish market behavior is saying something else: The Bloomberg US Aggregate bond index has risen to 4.3% so far this month, putting bonds on track for their best monthly performance since 1985, as traders hedge their calls that the Federal Reserve has finally stopped raising interest rates. Markets picked up further speed this week after a Fed official hinted at the possibility of rate cuts in the coming months, sending the USD to its lowest level in three months.

GPCA to set up shop in Abu Dhabi: The Global Private Capital Association (GPCA) will collaborate with the Middle East Venture Capital Association (MEVCA), according to a press release. Under the partnership, New York and Singapore-based GPCA will set up its first Middle East headquarters in Abu Dhabi.

Abu Dhabi is becoming an investment hub for global asset and fund management firms, according to an ADGM statement. The news of this latest partnership came during Abu Dhabi Finance Week’s (ADFW) 2023 edition of Asset Abu Dhabi conference.

ADX

9,553

+0.1% (YTD: -6.4%)

DFM

4,000

-0.2% (YTD: +19.9%)

Nasdaq Dubai UAE20

3809.86

+0.4% (YTD: -5.0%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

5% o/n

5.6% 1 yr

Tadawul

11,103

0.0% (YTD: +6.0%)

EGX30

24,759.16

-1.4% (YTD: 69.6%)

S&P 500

4,551

-0.1% (YTD: +18.5%)

FTSE 100

7,423

-0.4% (YTD: -0.4%)

Euro Stoxx 50

4,371

+0.5% (YTD: +15.2%)

Brent crude

USD 82.90

+1.5%

Natural gas (Nymex)

USD 2.80

-1.2%

Gold

USD 2,067

+0.3%

BTC

USD 37,717

-0.7% (YTD: +128.0%)

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 127.82 mn. The index is down 6.4% YTD.

In the green: Ghitha Holding (+5.2%), Umm Al Qaiwain General Investment (+3.9%) and Al Khaleej Investment (+3.5%).

In the red: Sharjah Ins. Company (-9.4%), Presight AI Holding (-4.6%) and Hayah Ins. Company (-3.7%).

Tags: