Most stock markets in the Gulf edged higher in early trade on Thursday, helped by growing confidence in a likely US interest rate cuts and ahead of an OPEC+ meeting.
US Federal Reserve Chair Jerome Powell made balanced comments at a New York Times event on Wednesday, describing the economy as in good shape but not really pushing back on market pricing for rate cuts.
Market’s attention is likely to shift to the US payrolls report on Friday, followed by inflation data for November expected next week.
Markets currently see a 74% chance of a 25-basis-point rate cut this month, according to the CME Group’s FedWatch Tool.
The Fed’s decisions significantly impact the Gulf region’s monetary policy, as most currencies in the region are pegged to the US dollar.
Saudi Arabia’s benchmark index gained 0.2%, helped by a 0.7% rise in aluminium products manufacturer Al Taiseer Group.
Most Gulf markets end higher ahead of US jobs data, Powell speech
The Abu Dhabi benchmark index added 0.1%. Oil prices – a catalyst for the Gulf’s financial markets – were mostly stable ahead of an OPEC+ meeting later in the day, with investors waiting to see what the producer group would do next on supply cuts while also monitoring geopolitical tension in the Middle East.
The Qatari benchmark rose 0.2%, with Qatar Islamic Bank increasing 0.7%.
DUbai’s main share index, however, fell 0.3%, hit by a 5.4% fall in toll operator Salik Co.
Source: Brecorder
