Weak global cues; Gaza-Israel conflict intensifies

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Gulf investors are likely to remain risk averse on Wednesday as air strikes in Gaza intensify.

Gulf investors are likely to remain risk averse on Wednesday as air strikes in Gaza intensify.

Gulf investors are likely to remain risk averse on Wednesday as air strikes in Gaza intensify, while truce talks continue and global cues are weak as Asian shares ease.

Israeli air strikes shook the Gaza Strip and Palestinian rockets struck across the border as US Secretary of State Hillary Clinton held talks in Jerusalem in the early hours of Wednesday, seeking a truce that can hold back Israel's ground troops.

Gulf markets were steady on Tuesday but investors remained cautious due to the conflict.

Dubai's index gained 0.8 percent to 1,591 points on Tuesday, but analysts remain bearish until the market recovers to 1,630 points.

Neighbouring Abu Dhabi's benchmark closed flat at 2,661 points. "The index is testing support at 2.655," MENA Corp says in a note. "We are waiting to see reversal signals in order to reinstate [buy] positions. Next important support is the 2,630 level."

In Saudi Arabia, petrochemical stocks may come under pressure after Saudi Industrial Investment Group (SIIG) highlighted fears of a possible rise in the price petrochemical producers pay for gas.

In Asian markets, investors refocus on the euro zone debt crisis after European officials failed to reach a deal on a bailout for Greece, while Federal Reserve Chairman Ben Bernanke highlighted the dangers of a U.S. fiscal crisis.

Brent crude futures were up 16 cents at US$109.99 a barrel by 0451 GMT, off an earlier session-high of US$110.55.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Blood on the bourse floor

Blood on the bourse floor

Arabtec’s share price collapse was the catalyst for a huge sell...

Taking stock

Taking stock

Gulf stock markets have seen a dearth of IPOs since the global...

Steering clear of the stock markets

Steering clear of the stock markets

Listing was all the rage three years ago, but IPOs have since...

Most Discussed
  • 10
    UAE teens among the highest for obesity rates

    Everyone in UAE knows that biggest is best.

    UAE may not light up the international league tables in standard of living, education standards, press... more

    Friday, 29 August 2014 4:20 PM - Proud UAEer
  • 9
    Saudi Arabia seeks talks on hiring of Sri Lankan maids

    perhaps the unemployed saudi men or the millions of women who are not allowed to work could pick up a broom and start sweeping their own houses. more

    Sunday, 31 August 2014 3:28 PM - nice
  • 9
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy
  • 24
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 23
    Baby NOT on board?

    Some of you cry babies need to get your own personal apartments on the plane ! You cry more then the babies I have seen in my travels. LOL more

    Thursday, 28 August 2014 9:10 AM - Jim
  • 21
    Israel “must be punished” over Gaza, says Dubai police chief

    This high moral ground that Mick is talking abt sound very familiar. May I remind Mick that the US & its British ally alone killed over 1 million innocent... more

    Thursday, 7 August 2014 4:12 PM - Mathew