All GCC equity markets, barring Oman (-0.2%), closed the truncated trading week on a positive note, according to a new analysis by investor relations consulting firm Iridium Advisors.
Qatar (+2.2%) and Dubai (+2.1%) led the region, with Dubai buoyed by the robust 1Q23 earnings of DFM and Emirates NBD.
Abu Dhabi (+1.6%) found support in Abu Dhabi Ports, ADIB, FAB, and Multiply Group.
The Saudi Exchange (+1.0%) was lifted by Aramco.
Bahrain (+0.4%) continued its winning streak, and Kuwait (+0.1%) inched higher for a third week.
In the US, the Nasdaq Composite (+1.3%) emerged as the top gainer, trailed by the S&P 500 (+0.9%) and Dow Jones (+0.9%), which notched identical gains. Strong earnings reports from the likes of META, Comcast, Honeywell, eBay, Intel, and others, as well as a slowdown in March inflation, propelled markets.
Conversely, except for the DAX (+0.3%), European indices such as STOXX600 (-0.5%), FTSE100 (-0.6%), and CAC40 (-1.1%) closed in the red.
Read more: Dubai’s DFM leads GCC markets with strong weekly rise
Treading cautiously
GCC investors may tread cautiously ahead of the US Fed meeting, given its potential impact on regional interest rates. While a quarter percentage point hike is widely expected, market participants will scrutinize comments for hints on future policy moves. Earnings will also be in the spotlight, with Alba, Aldar, Americana, Bahrain Islamic Bank, Boursa Kuwait, CBD, Doha Bank du, e&, Multiply Group, Ooredoo, Qatar Islamic Insurance, TECOM, and Zain Bahrain slated to announce 1Q 2023 results and host earnings calls
All eyes on Fed’s decision
In the US, the Federal Open Market Committee (FOMC) decision and the nonfarm payroll report will grab investors’ attention. The FOMC is anticipated to deliver another 25bps rate rise, while April’s nonfarm payroll is predicted to cool from 236,000 to 175,000. The EU is likely to see the ECB continue hiking rates, albeit by only 25bps. The UK will unveil PMIs, mortgage approvals, and house prices.
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