UAE markets surge after Russia offer on Syria
Dubai, September 10, 2013
Dubai's bourse surged in early trade after the United States said Russia's offer to work with Syria to put its chemical weapons under international control could be a potential 'breakthrough' in the crisis.
US President Barack Obama said Russia's offer could be a potential 'breakthrough' in the crisis, reducing fears of a US-led military strike against Syria for its alleged use of chemical weapons.
Iranian foreign ministry on Tuesday too said it supports Russia's offer.
Dubai's index jumped 5 per cent to 2,441 points and Abu Dhabi's benchmark rallied 5 per cent to 3,652 points.
Buying demand has increased following two weeks of heavy selling on hopes a potential military strike on Syria may be averted, said experts.
Earlier in the day, experts had predicted that Russia's offer could help boost Gulf investor sentiment and lure bargain hunters back to regional markets on Tuesday.
Brent crude oil futures dropped to a one-week low below $113 a barrel on Tuesday as supply fears abated.
Most Gulf markets fell on Monday in volatile trade, with Dubai's index slumping to a two-month low and Abu Dhabi dropping to its lowest close since late May.
Elsewhere, Asian stocks rose to three-month highs on Tuesday as investors wagered upcoming Chinese data will add to signs the global economy is stabilising.-Reuters