UAE markets rally after Fed hikes interest rates

Abu Dhabi: The UAE’s equity markets rallied in early trade on Thursday just hours after the US Federal Reserve announced the much-anticipated hike in interest rates, with the Dubai Financial Market (DFM) leading the way in gains.

Just less than two hours into trade, the DFM index was up 1.91 per cent to reach 3,042, having been trading below the 3,000 level in the past few trade sessions.

Almost all the market’s powerhouses also saw a jump in share prices.

Saudi's Tadawul index also jumped 1.36 per cent to reach 6,960 in early trade, just minutes after the market opened.

Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index was up 0.74 per cent to reach 4,095, as Qatar’s QE index was almost flat, falling 0.01 per cent to reach 9,861.

On Wednesday evening, the Federal Reserve hiked interest rates by 25 basis points to between 0.25 per cent and 0.50 per cent, signaling faith that the US economy had overcome the 2008 financial crisis.

The hike is the first of its kind in the past nine years.