FINWIRES · TerminalLIVE
FINWIRES

Geopolitical Uncertainties, Volatile Oil Prices Weigh on Emirati Stocks

By

Markets in the United Arab Emirates closed lower on Monday as the FTSE ADX General Index declined 1.202%, while the DFM General Index shed 1.738%.

Oil prices climbed amid no hopes for an end to the Iran war. US President Donald Trump said in a social media post that the "clock is ticking" for Iran to make a deal, and "there won't be anything left of them," if an agreement is not reached.

"The oil market continues to reprice ongoing supply disruptions, with last week's Trump-Xi talks yielding no tangible progress in the Middle East. There had been hope (possibly misplaced) that China could use its influence over Tehran to break the deadlock between the US and Iran. If anything, re-escalation risks are increasing, with a drone strike on the UAE's only nuclear power plant over the weekend," ING said.

As of 3:31 pm UAE time, the Brent crude oil futures stood at nearly $110.591 per barrel, up 1.22% from the previous day.

Closer to home, the UAE's Ministry of Defence said Sunday that investigations are being carried out to confirm the source of the three drones, two of which were intercepted and one led to a fire at an electrical generator outside the inner perimeter of the Barakah nuclear power plant in Abu Dhabi. The ministry added that the drones entered the country from the western border.

Over to corporates, Abu Dhabi National Energy Co. (ADX:TAQA), d/b/a Taqa, finalized the sale of a 49% stake in transportation and mobility services company Massar Solutions to BlueFive Capital. Shares of the energy company closed the session 3.91% in the red.

Meanwhile, in Dubai, BHM Capital Financial Services (DFM:BHMCAPITAL) recorded a 22% and 38% year over year growth in its net profit and total revenue, respectively, for the three months ended March 31. The financial and investment company's stocks ended flat.

Related Articles

Asia Markets

US Equity Investors to Stay Glued to Treasury Yields as Crude Oil Gains Likely to Make Inflation Worse

US equity investors will remain focused on President Donald Trump's attempts to force Iran to reopen the Strait of Hormuz as the 30-year Treasury yield traded at a 28-year high amid inflation concerns and Nvidia's (NVDA) quarterly results.* Oil prices extended gains on Monday as efforts to end the Iran war appeared to have stalled, a nuclear power plant in the United Arab Emirates came under attack, just as US President Donald Trump is expected to discuss military options to tackle Tehran, Reuters reported.* "For Iran, the Clock is Ticking, and they better get moving, FAST, or there won't be anything left of them," Trump said in a social media post.* The 30-year yield at 5.13% early Monday is trading at its highest since 2007 amid concern that higher crude oil prices, a supply-side shock, will severely limit the Federal Reserve's ability to control inflation.* The probability of a 25 basis-point increase in US interest rates in December was at 40% early on Monday from 22% a week ago and almost 1% a month ago, according to the CME FedWatch tool. The comparisons for September and October show a similar jump in rate-increase probabilities.* Meanwhile, about 20 S&P 500 firms will report this week, including many of the large retailers and the index's biggest constituent, Nvidia, according to a D A Davidson note late Friday. S&P 500 earnings have soared by more than 25% year-over-year, versus almost 13% set out as of March 31, based on over quarterly results from 91% firms that have reported. Companies from other equity indexes will also be releasing their results this week.* Wednesday's Federal Open Market Committee April meeting minutes may add more insight into the divisions between hawks, neutral voices, and doves, according to a Scotiabank note late Friday. Four of the 17 FOMC members and three of the voting FOMC members opposed language in the May statement that left the door open to a possible easing bias, but "Will others be revealed?," the note said.

$^DJI$^IXIC$^SPX$NVDA
Asia Markets

Tadawul Shares Start Week Lower as Russia-Ukraine Geopolitical Tensions Flare

The Tadawul All Share Index ended Sunday at 0.25% in the red as investors turned their attention to the aftermath of the US-China meeting last week."A Chinese foreign ministry readout noted that Presidents Xi and Trump agreed to establish 'China-US constructive strategic stability' to guide the next three years of relations. It holds the potential to expand cooperation on the economy and trade, health, agriculture, tourism, culture, and law enforcement," ING said. "The media and market focus was on the geopolitics side leading up to the summit, especially watching for any potential developments on Iran and Taiwan. No major breakthroughs were expected given the positions of both sides were well known heading into the meetings."In other news and dampening sentiment is the continued geopolitical tensions between Ukraine and Russia. Ukraine launched its biggest drone attacks in Moscow on Sunday. The retaliatory attacks resulted in at least four casualties and property damage.Looking ahead to the week, the local calendar will be quiet. Investors will turn their focus to the US Federal Reserve's latest meeting minutes on Wednesday after Jerome Powell's tenure as Fed chair ended. Powell will, however, continue to serve as the group's chair pro tempore until Kevin Warsh is sworn in as its new US Central Bank head.Back at home, Ades Holding (SASE:2382) extended its offshore shelf drilling contract with Tenaz Energy Netherlands. The deal involves drilling operations in the North Sea's Dutch sector. Shares of the drilling services company edged up 0.83% at closing.Meanwhile, Mohammed Hasan AlNaqool Sons (SASE:9514) is expanding its production and sales capacity with the purchase of 10 ready-mix concrete mixers and two ready-mix concrete pump trucks from Sani International Trading Development Co. The concrete manufacturer closed flat.

$^TASI$SASE:2382$SASE:9514
Asia Markets

US Equity Indexes Drop as Uncertainty Over Hormuz Reopening Timeline Boosts Treasury Yields

US equity indexes slumped as continuing uncertainty over the reopening timeline for the Strait of Hormuz following the China summit spooked investors, sending government bond yields and crude oil futures sharply higher.The Nasdaq Composite dropped 1.4% to 26,225.14, with the S&P 500 down 1.2% to 7,408.5 and the Dow Jones Industrial Average seen lower by 1% to 49,526.1 at the close on Friday.A summit between US President Donald Trump and his Chinese counterpart, Xi Jinping, ended with mixed messages over the reopening of Hormuz, the Wall Street Journal reported. The waterway is the choke point to about a fifth of global crude oil flows, and the impact of its full or partial closure was evident in consumer and wholesale price inflation."The market could be pinning too much hope on the US-China talks yielding some positive results on Iran," ING Bank said in a note. "Some hope that China could exert pressure on Iran to reach a deal with the US, to end the war, and lead to a resumption of energy flows through the Strait of Hormuz."A lack of trust is the biggest obstacle in negotiations to end the war with the US, and Tehran would be open to diplomatic help, particularly from China, to help ease tensions, Iran's foreign minister, Abbas Araghchi, was cited as saying in an Associated Press report. Contradictory messages have "made us reluctant about the real intentions of Americans," he added.Expectations that Hormuz will quickly return to normal maritime traffic levels in June are based on "magical thinking" and underestimate the political and operational barriers to restoring flows, RBC Capital Markets strategists said in a note. The analysts said that oil market disruptions could persist well into the summer demand season.US Treasury yields surged, with the 10-year up 13.8 basis points to 4.60%, the highest in about a year. The two-year advanced 8.9 basis points to 4.08%, the strongest level since February 2025.West Texas Intermediate crude oil futures surged 4.5% to $105.73, and Brent crude futures jumped 3.5% to $109.44.In precious metals, gold futures dropped 3.1% to $4,540.9, and silver futures sank 11% to $76.28 as the impact of higher crude prices has begun to show up in the inflation data. The probability of a 25 basis-point increase in interest rates in December surged to 39% on Friday from 14% a week ago, according to the CME FedWatch tool late Friday. The comparisons for September were 17% from 12%, and, for October, the data showed 27% versus 22%.In economic news, industrial production rebounded by 0.7% in April, above expectations for a 0.3% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.3% decline in March.In company news, DexCom (DXCM) said Friday it has set new long-term financial goals, including organic revenue growth of more than 10% a year through 2030. Shares jumped 6.6%, the top gainer on the S&P 500 and the Nasdaq.

$^DJI$^IXIC$^SPX$DXCM