UAE Shares Slide Ahead of US Inflation Report
Markets in the United Arab Emirates closed in the red again as investors await the release of the latest US inflation print later in the day amid the recent surge in geopolitical tensions.At the close of Tuesday trading, the FTSE ADX General Index shed 0.52%, while the DFM General Index declined 1.281%."After climbing 0.5% in May and 4.2% on an annual basis, the CPI is expected to decline outright, by 0.1% in June, and rise 3.9% on an annual basis, potentially marking the smallest annual gain since April and the first sub-4% reading since April," Stifel commented. "Excluding food and energy prices, the core CPI is also expected to show improvement - or at least no further acceleration in June. The core is expected to rise 0.3% and increase 2.9% year-over-year, potentially matching the gain the month prior."On the geopolitical front, US President Donald Trump said in a social media post that the blockade of Iranian ports in the Strait of Hormuz will resume on Tuesday. Trump also stated that the waterway will remain open to all other countries and proposed charging a 20% fee on ships passing through the waterway.Closer to home, the UAE Ministry of Defence said Tuesday that two national oil tankers, Mombasa and Al Bahiyah, were hit by cruise missiles from Iran, inflicting material damage to both tankers and resulting in one casualty and injuries to eight other crew members.Turning to corporate news, the National Bank of Ras Al-Khaimah (ADX:RAKBANK), d/b/a Rakbank, renewed its collaboration with Mastercard to deliver improved payment services across retail, business, and wholesale banking. Shares of the Abu Dhabi-listed lender closed the session 0.22% lower.International Financial Advisors (DFM:IFA), d/b/a IFA, stocks ended flat at trading close. The financial advisory services group's board cleared a $5 million investment in Warba Data Centers Development Fund and a $4 million financing deal with an unnamed bank to fund the investment.
