Most Gulf bourses gain on US rate cut bets

DUBAI: Most stock markets in the Gulf ended higher on Wednesday on optimism that the US Federal Reserve will start cutting interest rates early next year, although geopolitical tensions limited gains.

The rate cut expectations were boosted by US data released on Friday that showed that by some key measures inflation was now at or below the central bank’s 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve’s decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia’s benchmark index added 0.1%, helped by a 6.3% jump in Etihad Atheeb Telecommunication.

Dubai’s main share index added 0.2%, with blue-chip developer Emaar Properties rising 1.3%.

The Dubai bourse recorded limited price developments and continued to move sideways during the last few days.