Strengthening oil propels Dubai Financial Market as recovery gathers pace

The recovery of UAE stocks continued apace on Sunday morning, on the back of strengthening oil and Friday’s global equities rally.

Dubai’s headline index, which last week rose by 9 per cent, opened up more than 3 per cent this morning, lead by blue chips Emaar Properties and Dubai Islamic Bank.

Strong gains by FGB and Aldar Properties saw Abu Dhabi’s headline index rise 3.68 per cent in the first hour of trading, following last week’s 4.64 per cent gain.

Oil prices continued to strengthen on Friday on speculation that major producers will cut production. Brent crude futures closed up 2.5 per cent at $34.74 a barrel on Friday, their fourth consecutive daily rise.

Global equities strengthened at the end of the week in spite of a series of poor US financial results, after the Bank of Japan surprised markets by introducing negative interest rates in an effort to combat inflation.

The Nikkei closed up 2.8 per cent on Friday, while the S&P 500 finished 2.5 per cent higher.

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