UAE looks to double trade with Eurasia

UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan has been on a state visit to Moscow where he has met with President Vladimir Putin of Russia. The two countries signed a new Trade in Services and Investment Agreement during the visit, which follows an earlier CEPA agreement between the UAE and the Eurasian Economic Union, which will help further bolster trade and economic ties between the UAE and the region. The aim is to double the volume of trade between the UAE and the wider Eurasian region over the coming five years. UAE trade with Russia was USD 11.5bn last year, while trade with Eurasia was USD 30bn, on the back of robust growth over the past several years.

The Bank of England reduced its benchmark bank rate by 0.25 percentage points to 4% at its August 2025 meeting, with a narrow 5–4 majority on the Monetary Policy Committee. The decision reflects concerns about ongoing economic weakness, even as inflation remains above target at 3.6%. This marks the fifth rate cut since August 2024, signaling a cautious and gradual approach to monetary easing to support the UK’s struggling economy while balancing inflation risks.

US initial jobless claims for the week ending August 2 rose by 7,000 to 226,000, slightly exceeding economists’ expectations of 222,000 and marking the highest level since April. More concerning was the surge in continuing claims, which jumped 38,000 to 1.974 mn, the highest since November 2021, suggesting unemployed workers are taking longer to find new positions. The four-week moving average of initial claims fell slightly to 220,750, while the insured unemployment rate held steady at 1.3%. The data reflects a labour market dynamic where companies are neither aggressively hiring nor conducting mass layoffs. While the figures indicate some softening in labour conditions, they remain within historically normal ranges and don’t signal an imminent recession. Markets interpreted the data as increasing the probability of a September Fed rate cut to 87%.

Today’s Economic Data and events

16:30 Canada unemployment rate Forecast: 7%

Fixed Income

• US Treasury yields saw modest activity. The 2-year Treasury yield closed flat at 3.734%, and the 10-year yield ended at 4.2461%, also closing flat.

FX

• The dollar index (DXY) closed up 0.23% at 98.4. The Euro strengthened, rising 0.05% at 1.1666, while GBP gained 0.65% to close at 1.3444. The Japanese yen appreciated 0.16% to 147.14 against the dollar.

Equity Markets

• The S&P 500 edged down 0.1% to close at 6,340. The Dow Jones lost 0.51% to 43,968.64. The NASDAQ rose 0.35% to 21,242.70.
• Locally, DFM closed down 0.5%, ADX declined 0.12% and Saudi Arabia’s Tadawul closed 0.15% lower.

Commodities

• Oil prices continued to decline. Brent crude fell 0.69% to USD 66.43/b and WTI lost 0.73% to 63.88/b.
• Gold prices rose 0.80% to USD 3,396.38 per ounce. Silver jumped 1.16% to close at 38.27 per ounce.