Investors will be watching closely the new Federal Reserve Chair Jerome Powell’s first monetary policy meeting later in the week. There are high expectations that the Fed will raise interest rates for the first time this year.

One more key focus point will be on whether the Fed might signal another three rate hikes for the rest of the year.

Global markets were trading cautiously on Monday, with most investors refraining from taking positions before the Fed’s meeting.

MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5 percent.

In the Middle East, most markets failed on Sunday to track a rise in oil prices from the end of last week.

In Dubai, the index lost 0.1 percent, trading in low volumes. Emaar Properties dropped 1.9 percent, to close near 20-month lows.

Emaar Development gained 3.3 percent and Emaar Malls added 2.8 percent.

Courier Aramex closed 2.1 percent up after a research note from FAB Securities last week said the company was expected to grow in value given the strong e-commerce activity across the region.

Neighbouring Abu Dhabi’s index ended the trading session 0.2 percent lower.

The Saudi market gained in early trade but closed 0.2 percent down. Al Rajhi Bank, which attracted heavy foreign fund inflows earlier this year, pulled back for a fourth day running, losing 1.1 percent.

There were wider gains across the insurance sector, with Bupa Arabia up 3.1 percent after parent Bupa said at the end of last week that it planned to increase its stake by 5 percentage points to 39.25 percent in a transaction worth 400 million riyals ($107 million).

Egypt’s blue-chip index gained 1.6 percent by the close after its heaviest trading this year. Ezz Steel, buoyed by signs of a strengthening economy and expectations for more interest rate cuts as inflation recedes, rose 6.3 percent to 27.20 Egyptian pounds.

Qatar’s index dropped 0.5 percent, Kuwait’s index edged down 0.04 percent, while Bahrain’s index lost 0.2 percent and Oman’s index edged down 0.1 percent.

In commodities, oil prices fell early on Monday on rising U.S. crude inventories.

U.S. West Texas Intermediate (WTI) crude futures were at $62.02 a barrel at 0145 GMT, down 32 cents, or 0.5 percent, from their previous close.

Brent crude futures were at $65.87 per barrel, down 34 cents, or 0.5 percent.

“Despite all the bearish U.S. shale supply headlines, oil prices remain firm as... the odds that the U.S. will pull out of the Iran nuclear agreement continue to run very high,” Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore told Reuters.

The dollar was flat early on Monday and gold prices edged down in early trading, as investors are cautiously awaiting the Fed’s meeting later in the week.

In other news, average yields on Egypt's three- and nine-month treasury bills rose marginally at an auction on Sunday, central bank data showed.

For access to market moving insight, subscribe to the Trading Middle East newsletter by clicking here

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here. 

© ZAWYA 2018