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Gulf Today Report
The likelihood of inflation in Europe less of a risk than the United States as investors remain worried about boiling over prices ruining economic recovery, said analysts.
Investors’ have been apprehensive for weeks due to fears of US President Biden’s $1.9 trillion stimulus plan affecting the economy.
US Treasury bonds recorded gains, an indication that prices are set to jump higher than the previous year’s gain of 1.4 per cent, which could lead to a hike in interest rates by US Federal Reserve.
Aside from US, bond yields have risen in France and Germany. The 10-year French government bonds turned positive on Thursday for the first time in months while the benchmark 10-year German Bund has also risen although it remains negative.
European inflation data for January showed a jump in prices of 0.9 per cent compared to a minus 0.3 per cent reading in December, as increased costs of raw materials fed through into services and industrial goods.
The European Commission's recovery programme is worth 750 billion euros ($920 billion), with several EU members also having their own national programmes.
US underlying consumer prices increased solidly in August, leading to the largest annual gain in a year, but rising inflation is unlikely to deter the Federal Reserve from cutting interest rates again next week to support a slowing economy.
South Korea’s consumer inflation faltered to its slowest on record in August while second quarter economic growth was revised down on weaker exports, firming up the case for central bank rate cuts as early as next month.
Government’s efforts to reverse the slowdown on the back of a sluggish GDP growth is expected to induce volatility in the Indian equity markets during the coming week.
To take advantage of the growing crypto market in the region, Bluechip Group of Companies launched recently ‘Bluechip Token’ and ‘Acre N Yard’ in the UAE market.
Tecom Group said on Monday it raised Dhs1.7 billion ($462.87 million) from investors for its initial public offering (IPO). The company announced its plan on June 8
Over 1,600 new African member companies have registered with Dubai Chambers since October 2021, growing 6.5 per cent to reach 26,420 today, the Chambers have revealed.