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Emirati Equities Gain Ahead of US Fed's Monetary Policy Decision

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Markets in the United Arab Emirates closed in the green on Wednesday as investors brace for the US Federal Reserve's highly anticipated monetary policy meeting later in the day.

​At the close of trading, the FTSE ADX General Index was little changed at 0.048% in the green, while the DFM General Index gained 0.122%.

The US Fed is expected to leave rates unchanged in the 3.50% to 3.75% range for the fifth consecutive meeting amid cooling but still-elevated inflation and looming uncertainty from the Middle East conflict. However, traders are also pricing in the possibility of a rate hike.

"Global markets will be bracing for the Fed meeting as we're bound to have a surprise, but the direction remains up for debate. Markets seem to settle at around a 30% probability of a hike, which means both a hold and a hike should push rates around," ING analysts said. "The narrative around the decision matters too, especially the stance of Fed Chair Kevin Warsh if the option to hike rates is chosen. He might not endorse the move but simply deliver it."

On the geopolitical front, the US and Saudi Arabia carried out joint strikes on Iran-backed groups in Eastern Iraq in response to drone attacks on Saudi energy infrastructure. The escalating tensions in the Middle East faded hopes of a swift resolution and drove oil prices higher, with Brent crude oil futures up 4.88% as of 3:45 pm UAE time.

Back home and on the corporate front, investors assessed first-half earnings reports from companies, including Americana Restaurants International (ADX:AMR) and Aldar Properties (ADX:ALDAR).

Americana Restaurants International was the Abu Dhabi bourse's most traded stock by volume and closed 4.88% higher after it recorded a 59.2% year-over-year growth in attributable net profit. Aldar Properties also achieved a higher attributable profit for the period, backed by an 8% growth in revenue, but closed the session 2.35% in the red.

Meanwhile in Dubai, Commercial Bank of Dubai (DFM:CBD) launched its new CBD Invest digital wealth offering to provide its elite and private banking customers with a detailed view of their financial position and enable them to manage their investment portfolios and make informed decisions. Shares of the Emirati lender gained 2.13% at closing.

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Dow JonesNasdaq CompositeS&P 500$AAPL$GLW$META$MSFT$SKHY$SMH
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Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH