DUBAI: The stock markets of the UAE ended the day higher by Friday's closing, owing to a steep rise in oil prices globally and optimism on international trade talks.
This was after a meeting between US President Donald Trump and Italian Prime Minister Giorgia Meloni in Washington, where both expressed hope for coming resolutions on trade tensions over the US-European Union.
Oil prices, critical for one aspect which has to do with investor perception in the Gulf region, surged 3% to reach $67.85 per barrel by 1110 GMT. This was heightened by trade optimism and fears over global oil supply due to US sanctions designed to limit Iranian crude exports.
Such encouragement helped lift investor confidence across the high-profile exchanges in the UAE- energy-related stocks and significant gains by the major financial institutions both witnessed. Analysts have indicated that the degree of correlation between trends in oil and market performance is still strong in the Gulf, which certainly provided an additional boost with the newly released price increase.
An economy reliant on hydrocarbon revenues like the UAE's usually mimics market movements to the movement of oil prices. Investors see trade tensions relenting, giving rise to hopes that demand projections might steady globally, hence the more promising trading environment in the months to come.
Market gurus keep their watchful eyes on geopolitical, economic indicators, and experts mention that with oil's continued strength and significant diplomatic achievements, the UAE market could continue to grow in the near future.
[Source Credit: Business Recorder]
