Tadawul All Share Index Closes Lower Ahead of US Inflation Report
The Tadawul All Share Index closed the Tuesday session lower at 0.11% in the red as investors brace for the US' latest inflation print and its potential effect on the US Federal Reserve's next rate move."What could make the Fed delay rate hikes, however, would be a low July CPI report this week. But we would note that even a low CPI print (say, where core declines to 2.4-2.5% in July, from 2.6% in June), might not be enough to negate the concerns of the Fed's hawks, which seem to focus on the durability of above-target inflation for the past four years," Macquarie analysts said. "But could the data push the FOMC to delay the rate hike to December? Yes, it could. The reasons for a December hike are that the Fed will be issuing a new 'dots' and SEP in December, making the December a focal point for the Fed to change its policy settings."Market watchers are also on the lookout for Saudi's latest July inflation data, which is due on Thursday. The kingdom's annual inflation rate is expected to remain stable at 1.8% in July.In other news, US President Donald Trump requested compensation from Iran regarding the conflict between the two nations, among other reasons, Reuters reported. Trump's proposal comes after Iran outlined the conditions that the US follow to reopen the Strait of Hormuz.Back at home and on the corporate front, Amana Cooperative Insurance (SASE:8310) shares closed 3.03% lower as its board recommended lowering its capital to 301 million Saudi riyals. The capital decrease will be made to offset accumulated losses.Meanwhile, another round of earnings reports was released as Middle East Specialized Cables Co. (SASE:2370), Dar Albalad for Business Solutions (SASE:7205), and Baazeem Trading (SASE:4051) reported higher attributable net profit and revenue for the first half of 2026.Middle East Specialized Cables, Dar Albalad, and Baazeem Trading shares ticked down 9.27%, 2.13%, and 1.44% at closing.
