Stock markets in the Gulf ended mixed on Wednesday, ahead of Federal Reserve Chair Jerome Powell’s congressional testimony that could reveal clues on a potential June rate cut.
Traders are scouring U.S. economic data and policymakers’ speeches to gauge when the Fed would start cutting rates. Markets are pricing in a 68% chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index gained 0.7%, led by a 0.6% rise in Al Rajhi Bank and a 2% increase in Alinma Bank.
Elsewhere, oil giant Saudi Aramco was up 0.2%.
Crude prices - a key catalyst for the Gulf’s financial markets - rebounded slightly after four days of declines as signs of supply tightness amid output cuts by major producers overrode demand concerns in China and the U.S.
OPEC+ members led by Saudi Arabia and Russia agreed on Sunday to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, giving extra support to the market.
Most Gulf markets ease on falling oil; Saudi gains
In Abu Dhabi, the index eased 0.1%.
Dubai’s main share index added 0.1%, helped by a 2.6% increase in Tecom Group.
The Qatari benchmark dropped 0.8%, weighed down by a 5.2% slide in Mesaieed Petrochemical.
The Qatari “market could stabilize after the current price corrections, supported by solid fundamentals and accelerating non-energy sector growth, expansions in output and employment, and improved business expectations in February,” George Khoury, Global Head of Education and Research at CFI, said.
Outside the Gulf, Egypt’s blue-chip index tumbled 3%, retreating from a record high, with Talaat Mostafa Holding declining 10.6%.
======================================== SAUDI ARABIA rose 0.7% to 12,562 ABU DHABI fell 0.1% to 9,225 DUBAI added 0.1% to 4,248 QATAR dropped 0.8% to 10,304 EGYPT lost 3% to 29,743 BAHRAIN was up 0.1% to 2,016 OMAN rose 1.1% to 4,753 KUWAIT dropped 0.5% to 8,109 ========================================
Comments
Comments are closed.