Emirati Shares Close Mixed Ahead of US Inflation Data
Stocks in the United Arab Emirates struggled to find direction on Wednesday as investors await the latest inflation report from the world's top economy.At the close of trading, the FTSE ADX General Index added 0.16%, while the DFM General Index was down 0.472%.The US Bureau of Labor Statistics will publish the consumer price index print for May later in the day. The data will assist investors in assessing the impact of the Iran war and higher energy prices on US inflation and future monetary policy."The highlight will be the release of the May CPI report, where headline inflation is expected to rise above the 4.0% YoY level for the first time since May 2023 and core CPI is expected to rise 0.3% month-on-month and 2.9% (2.8% prior) YoY. Assuming those levels are delivered, expect the market to continue pricing a Fed hike in December and the dollar to stay supported," ING said.On the geopolitical front, Middle East tensions re-escalated after the US attacked Iranian air defenses and radar sites in response to downing its helicopter over the Strait of Hormuz. Iran's Revolutionary Guards retaliated by firing missiles and drones at US military bases in Kuwait, Jordan, and Bahrain."With 11.8 million barrels per day (bpd) shut in across six Gulf producers, the conflict has become the most severe supply disruption in the modern oil era," Rystad Energy's MENA Research Director Aditya Saraswat commented. "Despite a fragile memorandum of understanding between the US and Iran that had raised hopes of a deal, both sides have since returned to air strikes, narrowing the diplomatic track and widening the tail risk of a prolonged shock."Over to corporates, GFH Bank (ADX:GFH, DFM:GFH) became a featured partner of the StartUp Bahrain University of Bahrain to support the StartUp Bahrain program aimed at providing students with practical exposure to entrepreneurship and early venture building. Shares of the investment group ended 0.46% higher on the Abu Dhabi bourse and 0.94% in the green on the Dubai Financial Market.Elsewhere, shares of Dubai Islamic Bank (DFM:DIB) ended the session 0.68% in the red. The lender priced $1 billion of additional tier 1 perpetual non-call sukuk for regional and international investors with an orderbook exceeding $2.3 billion.