Dubai:
Despite the recent slide in oil prices and a weekahead loaded with potentially market shaking events, Dubai stocks closed in positive territory on Monday.
The Dubai Financial Market General Index closed 0.58 per cent higher at 3,501.18. Oil, which often drives the sentiment in local stock markets, was up 0.58 per cent by 6pm. Dubai Time, after falling for 5 consecutive sessions.
However, global markets were in range-bound mode ahead of a Federal Reserve meeting, elections in the Netherlands, and the meeting of the finance ministers of G20 on Friday.
“We will see a range-bound markets, and that’s how markets have been behaving in case of major events. In this case, we have three major events coming up,” Nadi Bargouti, managing director, asset management, Emirates Investment Bank told Gulf News.
“The markets may witness some volatility on the day of the event, but heading into the event itself, we may not see huge volumes,” Bargouti said.
The Dow Jones Industrial Average futures was 0.08 per cent higher at 20,864. The S&P 500 was 0.02 per cent higher at 2,369. The EURO STOXX 600 index was 0.33 per cent higher at 374.46. The FTSE 100 index was 0.32 per cent higher at 7,366.33.
“The rate increase is much more likely now, than two weeks before. We are not changing our strategy due to a fed rate hike. There is not going to major surprise,” Bargouti said.
There is a 90 per cent probability of a rate hike on Wednesday after stronger-than-forecast February US payrolls report. The finance ministers of group of 20 nations will meet on Friday, their first after Donald Trump assumed office.
But for Bargouti, for now, the focus will be on short duration, higher quality bonds.
US oil continued its fall for another session on swelling inventories and rising rig counts of shale.
West Texas Intermediate was 0.16 per cent lower at $48.41 per barrel, while Brent was up 0.18 per cent at $51.46 per barrel after losing more than 8 per cent last week.
Gold traded 0.30 per cent lower at $1,203.39 per ounce after falling more than $50 in the past few weeks.
