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Emirati Shares Close Mixed Amid Subdued US Inflation Data

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Shares in the United Arab Emirates closed mixed as investors weighed subdued US inflation figures, boosting hopes that the Federal Reserve will keep rates steady.

At the close of Thursday trading, the FTSE ADX General Index gained 0.319%, while the DFM General Index was down 0.211%.

The US inflation print rose 0.1% month on month in July, bringing the year-on-year inflation rate down to 3.4%. Core inflation grew 0.2% month-on-month and 2.5% annually.

"Easing inflationary pressure and a weakening labour market have reduced the need for the Federal Reserve (Fed) to raise the target range for the federal funds rate at its next meeting on Sept. 16," Berenberg said. The latest economic data support our long-held call that the Fed will not raise interest rates this year. However, there are still five weeks until the next Fed meeting. Much depends on whether the Strait of Hormuz reopens soon and energy prices fall again."

In other news, talks between the US and Iran to reopen the Strait of Hormuz remain heavily stalled. US President Donald Trump said in a social media post that the US has total control over the waterway, while calling the Middle Eastern country "all talk and no action."

Back home and on the corporate front, Abu Dhabi National Energy Co. (ADX:TAQA), d/b/a Taqa, reported a 9.7% year-over-year increase in its first-half attributable net income driven by higher contributions from joint ventures and associates, and stable earnings from utilities businesses.

Over in Dubai, Alec Holdings (DFM:ALEC) and National General Insurance (DFM:NGI) logged lower profits for the first six months ended June 30. Alec Holdings gained 2.22%, while National General Insurance shares were flat at the close of trading.

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