Most stock markets in the Gulf ended higher on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off.
Data for May showed the Fed’s preferred measure of inflation did not increase at all that month, while the 12-month rate of price increases has ebbed to 2.6%, still above the U.S. central bank’s 2% target but on the way down after a scare in the first few months of the year.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.
Dubai’s main share index gained 0.4%, with Emirates Central Cooling Systems rising 2.7% and toll operator Salik gaining 1.4%.
In Abu Dhabi, the index was up 0.1%, with ADNOC Drilling gaining 0.5% after the firm was awarded a $733 million contract for three rigs.
Gulf markets mixed as expectations rise of US rate cuts
The Qatari benchmark added 0.5%, led by a 0.6% gain in Qatar National Bank and a 0.9% increase in petrochemical maker Industries Qatar.
Oil prices - a catalyst for the Gulf’s financial markets - rose as U.S. industry data boosted hopes of solid fuel demand during the summer driving season in the top oil-consuming nation.
Saudi Arabia’s benchmark index eased 0.1%, falling for a fourth consecutive session, with Al Rajhi Bank losing 0.6%.
Outside the Gulf, Egypt’s blue-chip index finished 0.6% higher, with Talaat Mostafa Group (TMG) advancing 2.1%.
TMG is to invest $21 billion in the SouthMED tourism development that includes luxury villas and a marina on Egypt’s Mediterranean coast, its chief executive said on Tuesday.
======================================= SAUDI ARABIA fell 0.1% to 11,595 ABU DHABI rose 0.1% to 9,094 DUBAI gained 0.4% to 4,079 QATAR added 0.5% to 10,053 EGYPT up 0.6% to 28,161 BAHRAIN dropped 0.5% to 2,006 OMAN was flat at 4,685 KUWAIT was up 0.4% to 7,570 =======================================
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