Overview:

UAE equities advanced for the fourth consecutive session Thursday, with the Abu Dhabi Securities Exchange surpassing the 10,000-point threshold as investor sentiment strengthened across real estate and banking sectors. Concurrently, oil prices declined following a provisional US-Iran agreement to end hostilities and reopen the Strait of Hormuz, while gold recovered above USD 4,300 per ounce. Global markets showed mixed performance as interest rate expectations shifted in response to Federal Reserve communications.

Details:

UAE stock markets demonstrated continued resilience, with the Abu Dhabi index rising 0.34 percent in Thursday trading, driven by strong performance in blue-chip stocks. Dubai real estate transactions totaled AED 2.4 billion across 893 deals, with sales accounting for AED 1.62 billion from 695 transactions. Dubai real estate sector projections suggest new property developments exceeding AED 1 trillion over the next five years, signaling robust market confidence.

The geopolitical landscape shifted significantly with the US-Iran peace accord, directly impacting commodity markets. Oil prices retreated from the USD 80 level as the agreement paves the way for Strait of Hormuz reopening and sanctions relief. Gold, however, rebounded by more than one percent, recovering losses from the previous session as markets reassess risk positioning. The precious metals sector faces broader headwinds, with natural diamonds declining 25-30 percent since 2022, while laboratory-created stones fell 90 percent over five years.

International monetary policy developments created volatility across asset classes. Bank of England maintained primary interest rates at 3.75 percent for the fourth consecutive session, while the Swiss National Bank held rates unchanged at zero percent. Bitcoin declined to USD 64,000 as Federal Reserve hawkish guidance increased market expectations for rate increases. Japan's Nikkei index crossed 71,000 points for the first time, benefiting from peace agreement optimism.

Outlook:

Investors are monitoring US Federal Reserve policy direction closely, with markets pricing increased likelihood of rate increases. The reopening of the Strait of Hormuz and corresponding oil market dynamics will influence energy sector valuations regionally and globally. UAE real estate and emerging startup ecosystem developments remain key growth catalysts, with Abu Dhabi ranking among the top 50 global startup ecosystems, attracting substantial foreign direct investment flows.