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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Reflecting the region's sensitivity to global monetary shifts, major Gulf stock exchanges declined as investors adopted a cautious stance. Markets were pressured by increasing bets on Federal Reserve interest rate hikes in the coming period. This downturn comes amid tightening liquidity and a shift in risk appetite across dollar-pegged Gulf markets.
The pressure coincided with robust U.S. economic data, as Retail Sales grew by 0.9% in June, exceeding the 0.5% forecast per market data. Additionally, Pending Home Sales recorded a 4.8% year-on-year increase, strengthening the case for continued monetary tightening. In related macro context, the Federal Reserve maintained interest rates at 3.75% during its June 17, 2026 meeting, further impacting borrowing costs across the GCC.
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Sign InInvestors should monitor liquidity levels in local bourses over the coming sessions to gauge the sustainability of this retreat. Looking ahead at the economic calendar, traders are awaiting the release of U.S. Initial Jobless Claims on June 18, 2026, which may provide fresh signals regarding labor market strength and future rate trajectories.