“I would think a spike in oil prices will likely prove to be short-term given that the global economy isn’t doing too well,” Akira Takei, bond fund manager at Asset Management One told Reuters.
Stock markets in the United States were mainly unchanged on Tuesday as investors were cautious ahead of a Federal Reserve two-day policy meeting.
By 2:30 pm Eastern Time, the Dow Jones Industrial Average was down 0.06% at 27,060.17 points, while the S&P 500 gained 0.01% to 2,998.34. The Nasdaq Composite added 0.09% to 8,160.91.
Investors will wait for clues on how far the U.S. monetary policy easing would go, given that Fed policymakers are deeply divided on whether more rate cuts are warranted.
“Its going to be difficult for them to signal an extremely dovish tone, given they are already half divided at this point,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, in Charlotte, North Carolina told Reuters.
Middle East markets
Saudi Arabia’s index dropped 0.7 percent on Tuesday with the Gulf's largest petrochemical firm Saudi Basic Industries (SABIC) dropping 3.2 percent as the firm traded ex-dividend.
Dubai’s index lost 1 percent, led by blue-chip developer Emaar Properties which was down 3 percent, while Dubai Islamic Bank closed 0.9 percent lower.
In Abu Dhabi, the index edged up 0.2%, with the United Arab Emirates' largest lender First Abu Dhabi Bank gaining 1 percent.
Qatar’s index fell 0.4 percent on a 1.4 percent drop in Qatar Islamic Bank and a 2.7 percent drop in Qatar Insurance Company.
Egypt’s blue-chip index EGX30 fell 1.5 percent while Kuwait’s premier market index dropped 0.5 percent, Oman’s index slipped 0.2 percent and Bahrain’s index dropped 0.7 percent.
The dollar was mainly unchanged early on Wednesday.
The dollar index .DXY, which measures the greenback against a basket of six major currencies, fell 0.02 percent to 98.242.
Gold prices were also unchanged on Wednesday.
Spot gold was steady at $1,501.91 per ounce, as of 0100 GMT.
U.S. gold futures were down 0.3 percent at $1,508.8 per ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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