Most stock markets in the Gulf ended higher on Sunday as investors priced in the possibility of a big interest rate cut by the US Federal Reserve.
Markets focused on comments from a former U.S policymaker who argued that a 50-basis point rate cut is still an option next week.
Futures tied to the Fed’s policy rate now reflect about a 47% chance the Fed will cut its policy rate by half a percentage point, climbing from 28% on Tuesday following media reports suggesting it could be a close call between a half-point and a quarter-point rate cut.
UAE stocks gain on Fed rate cut hope
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the US Federal Reserve’s decisions, as most of the regional currencies are pegged to the US dollar.
Saudi Arabia’s benchmark index gained 0.5%, with Al Rajhi Bank rising 1.1% and aluminium products manufacturer Al Taiseer Group closing 0.2% higher.
The Qatari benchmark advanced 0.6%, led by a 2% gain in Islamic lender Masraf Al Rayan.
SAUDI ARABIA rose 0.5% to 11,900
QATAR gained 0.6% to 10,459
BAHRAIN eased 0.1% to 1,952
OMAN was up 0.4% to 4,746
KUWAIT added 0.1% to 7,748
Source: Brecorder
