(Reporting by Ateeq Shariff in Bengaluru; Editing by Sonia Cheema)
March 8 (Reuters) - Major stock markets in the Gulf fell
in early trade on Wednesday, tracking Asian equities after the
U.S. Federal Reserve Chair reiterated the likelihood of sharp
rate hikes to tame inflation.
In his comments, Jerome Powell confirmed that a recent spate
of generally robust economic data, particularly in the labor
market, along sticky inflation, increases the likelihood that
the Fed will raise its policy rate more aggressively.
Most Gulf Cooperation Council countries, including Saudi
Arabia, the United Arab Emirates and Qatar, have their
currencies pegged to the U.S. dollar and follow the Fed's policy
moves closely, exposing the region to a direct impact from
monetary tightening in the world's largest economy.
Saudi Arabia's benchmark index dropped more than 1%,
weighed down by a 1.5% fall in Al Rajhi Bank and a
2.6% slide in Riyad Bank .
Separately, decisions on oil output taken by OPEC+ countries
reflect consensus in the group, the Saudi foreign minister said
on Tuesday after reports of differences among members.
Foreign Minister Prince Faisal bin Farhan Al Saud played
down a Wall Street Journal report of divergence between Saudi
Arabia and the UAE on a range of policy areas including OPEC and
Yemen.
Dubai's main share index declined 0.7%, with toll
operator Salik sliding 2.9%. and Dubai Electricity
and Water Authority retreating 1.2%.
In Abu Dhabi, the index was down 0.5%, on course
to extend losses from the previous session.
Oil prices fell for a second straight session on Wednesday,
driven by fears that more aggressive U.S. interest rate hikes
would hit demand, while the market awaited further clarity on
inventories.
The Qatari benchmark lost 0.6%, as most of the stocks
on the index were in negative territory, including telecoms firm
Ooredoo , which was down 5.6% as the stock went
ex-dividend.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.