Finance World

The Central Bank of the UAE (CBUAE) announced that, effective Thursday, 27 September 2018, it will raise interest rates applied to the issuance of its Certificates of Deposits in line with the increase in interest rates on US Dollar, following the Federal Reserve Board’s decision to increase the Federal Funds Rate by 25 basis points at its meeting of today.

Al Ahli Bank of Kuwait K.S.C.P. (“ABK”) today priced a highly successful US$300 million bond, marking the first international capital markets issuance out of Kuwait in 2018. The instrument, issued to further boost ABK’s eligible Tier-1 capital has a call date of 5 years.

The Bloomberg Commodity Index, which tracks the performance of 22 major commodity futures, rose from the ashes this past week. The 2% gain occurred after some early weakness after the US announcement of additional tariffs on $200 billion worth of Chinese imports.

Currencies

Trendline resistance on daily chart

With US-China trade relations set to sour even further, that's putting a bid in the dollar while also leaving the Aussie offered at the same time. China announced over the weekend that it was pulling out from all future trade talks with the US in the wake of the recent decision to impose economic sanctions on a number of Chinese officials. The diplomatic scuffle is over China purchasing jets and missiles from a Russian arms exporter subject to US sanctions.

Currencies

Upbeat NFP report supports USD

American wages climbed in August by the most since the recession ended in 2009 and hiring rose by more than forecast, keeping the Federal Reserve on track to lift interest rates this month and making another hike in December more likely. Average hourly earnings for private workers increased 2.9 percent from a year earlier exceeding all estimates and the median projection for 2.7 percent.