Abu Dhabi, Dubai Stocks Rebound Amid US Inflation Data Focus
The two benchmark indices of the United Arab Emirates closed higher on Wednesday, with Abu Dhabi's FTSE ADX General Index and Dubai's DFM General Index adding 0.054% and 0.689%, respectively.Markets brace for the US Bureau of Labor Statistics' release of the consumer price index report for July later in the day, which is expected to provide investors with signals on inflation and the US Federal Reserve's future interest rate policy."Our US economists think that headline CPI will come in at a monthly +0.15% pace, which would bring the year-on-year rate down to +3.45%, with a decline in gas prices weighing on that headline number. Meanwhile, they see core CPI coming in a bit stronger at +0.26% on the month, which would leave the year-on-year reading at +2.51%," Deutsche Bank Research said.On the geopolitical front, Yemen's Iran-backed Houthis attacked a cargo ship in the Bab el-Mandeb strait on Tuesday, resulting in six casualties. Meanwhile, the US military launched missiles at a cargo ship attempting to breach its naval blockade on Iranian ports in the Gulf of Oman, media reports said.Zooming in at home, foreign investment in Dubai's real estate rose 26% year over year to 148.35 billion Emirati dirhams in the first quarter, with total real estate transactions reaching 252 billion dirhams.On the corporate side, Abu Dhabi National Insurance Co. (ADX:ADNIC) shares closed flat as it reported a decline in first-half attributable profit due to recognition of war-related provisions and short-term volatility in the investment market.Elsewhere, Dubai Electricity and Water Authority (DFM:DEWA), d/b/a Dewa's, attributable profit for the six months ended June 30 jumped to 3.19 billion dirhams from 2.76 billion dirhams, driven by a 1.8% year-over-year increase in revenue. Its shares closed the session 0.36% in the green.
