Global stock markets settled mostly higher as Wall Street made a gain to pick up its 10th weekly win in 11, as a key inflation report provided more hope that the Federal Reserve would begin cutting high interest rates.
Market players are pinning their hopes that the US central bank will reduce rates after the US producer price index posted a surprise decline in December when diesel and food costs dipped, which is a sign that inflation will continue to taper down.
The PPI inched down 0.1 per cent last month, the Labour Department reported on Friday. That was a third straight decline and off the 0.1 per cent rise predicted by economists polled by Reuters.
On Thursday, the Labour Department said that inflation in the US rose 3.4 per cent year-on-year, up from 3.1 per cent in November, beating a FactSet forecast that called for a 3.2 per cent rise.
The report – the first US inflation reading this year – comes as traders forecast when the Fed will cut interest rates this year and by how much.
Ahead of the report, data from the CME Group showed most forecast the Fed would announce its first rate cut of this policy cycle in March. Most expected interest rates to fall somewhere between 3.75 per cent and 4.25 per cent by the end of this year.
The CPI report was "less than ideal and the market reaction was mixed", Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note.
"Disinflation remains the base case scenario for this year ... yet some hawkish voices are rising at the Fed, at the start of this year," she said.
Ms Ozkardeskaya noted Bank of Cleveland president Loretta Mester's comments this week that it is probably too early to cut rates, and Bank of Richmond president Thomas Barkin looking for more evidence that inflation is headed toward the Fed's 2 per cent target.
On Wall Street, the Dow Jones Industrial Average retreated 0.3 per cent, while the S&P 500 and tech-heavy Nasdaq Composite barely inched up and were virtually flat.
For the week, the Dow added 0.3 per cent, the S&P 500 gained 1.8 per cent and the Nasdaq advanced 3.1 per cent. Year-to-date, all three indices are up 0.3 per cent.
In Europe, London's FTSE 100 rose 0.6 per cent, lifted by commodity stocks. However, it posted a weekly decline as uncertainty loomed over interest rates.
The Bank of England's Monetary Policy Committee has set its sights on a 2 per cent inflation target and "in a way that helps to sustain growth and employment", it said.
In other major European bourses, Paris' CAC 40 jumped 1.1 per cent and Frankfurt's DAX gained 1 per cent.
Earlier in Asia, Japan's Nikkei surged 1.5 per cent, extending its substantial winning run in 2024 to post another 34-year high, outpacing all other major global markets so far in the new year.
Hong Kong's Hang Seng Index and the Shanghai Composite retreated 0.4 per cent and 0.2 per cent, respectively.
In commodities, oil prices surged on Friday before settling around 1 per cent higher after the US and UK struck Houthi targets in Yemen and Iran seized a tanker in the Gulf of Oman, stoking fears of an escalation in geopolitical tensions that could threaten trade and oil flows.
Brent rose 1.14 per cent to close at $78.29 a barrel, while West Texas Intermediate added 0.92 per cent to settle at $72.68 a barrel.
Gold, meanwhile, jumped 1.6 per cent to settle at $2,051.60 per ounce, as its safe-haven appeal shone amid the ongoing tensions in the Middle East.
The precious metal, which is also a hedge against inflation, was mostly flat during the week but added as much as 1.7 per cent on Friday.
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
UAE currency: the story behind the money in your pockets
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Results
2.30pm: Handicap (PA) Dh40,000 1,700m; Winner: AF Mezmar, Adam McLean (jockey), Ernst Oertel (trainer).
3pm: Maiden (PA) Dh40,000 2,000m; Winner: AF Ajwad, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 1,200m; Winner: Gold Silver, Sam Hitchcott, Ibrahim Aseel.
4pm: Maiden (PA) Dh40,000 1,000m; Winner: Atrash, Richard Mullen, Ana Mendez.
4.30pm: Gulf Cup Prestige (PA) Dh150,000 1,700m; Winner: AF Momtaz, Saif Al Balushi, Musabah Al Muhairi.
5pm: Handicap (TB) Dh40,000 1,200m; Winner: Al Mushtashar, Richard Mullen, Satish Seemar.
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Engine: 3.9-litre twin-turbo V8
Power: 640hp
Torque: 760nm
On sale: 2026
Price: Not announced yet
The Bloomberg Billionaire Index in full
1 Jeff Bezos $140 billion
2 Bill Gates $98.3 billion
3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Race card
6.30pm: Emirates Holidays Maiden (TB), Dh82,500 (Dirt), 1,900m
7.05pm: Arabian Adventures Maiden (TB), Dh82,500 (D), 1,200m
7.40pm: Emirates Skywards Handicap (TB), Dh82,500 (D), 1,200m
8.15pm: Emirates Airline Conditions (TB), Dh120,000 (D), 1,400m
8.50pm: Emirates Sky Cargo (TB), Dh92,500 (D)1,400m
9.15pm: Emirates.com (TB), Dh95,000 (D), 2,000m
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The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
The specs: McLaren 600LT
Price, base: Dh914,000
Engine: 3.8-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 600hp @ 7,500rpm
Torque: 620Nm @ 5,500rpm
Fuel economy 12.2.L / 100km
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
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Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
New schools in Dubai
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