UAE Shares Gain Amid Focus on US Fed Rate Move
Stock trading in the United Arab Emirates ended in the green again as markets await the key interest rate decision from the world's biggest economy later in the day.At the close of Wednesday trading, the FTSE ADX General Index added 0.331%, while the DFM General Index was up 1.007%.The US Fed will release its monetary policy decision today, with analysts expecting the federal funds rate to remain unchanged in the 3.50% to 3.75% range for the fourth consecutive meeting. It will also mark Kevin Warsh's first press conference as Fed chair."We expect the policy rate will remain at 3.75%, as also priced by markets. Focus will be on his policy leanings, views on the economy and any shifts in Fed practices. Even if Warsh proves to be relatively dovish, we still expect the distribution of rate projections to move higher compared to March," Danske Bank said in a note.On the geopolitical front, the US and Iran are expected to meet in Geneva on Friday to sign their deal, comprising the reopening of the Strait of Hormuz and a 60-day ceasefire extension during which negotiations will take place regarding Iran's nuclear program.Zooming in at home, the Central Bank of the UAE and the Bank for International Settlements concluded their secure cross-border open finance initiative Project Aperta, confirming a secure and real-time exchange of cross-border financial data.On the corporate side, Alef Education (ADX:ALEFEDT) expanded its artificial-intelligence-powered language learning system Arabits across private schools in the UAE. Shares of the Abu Dhabi-listed K-12 education technology company closed the session 0.91% in the red.Dubai Investments' (DFM:DIC) real estate arm, Dubai Investment Real Estate, completed the final phase of villa handovers at its Danah Bay mixed-use beachfront development on Al Marjan Island in Ras Al Khaimah. The Emirati investor closed the session 0.27% higher.
