Most stock markets in the Gulf rose in early trade on Thursday, as softer US core inflation data maintained the possibility of future interest rate reductions by the Federal Reserve.
Data showed on Wednesday the US consumer price index (CPI) rose 2.9% year on year in December, meeting expectations, while core inflation increased by 3.2%, marginally below the predicted 3.3%.
Investors drew encouragement from the inflation data, which was further bolstered by Tuesday’s release of US producer price data showing moderate growth in December.
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 dollar.
Saudi Arabia’s benchmark stock index gained 0.2%, with shares in petrochemical maker Saudi Basic Industries Corp rising 1.6%.
The kingdom is working on a new mineral investment valued at $100 billion, with $20 billion already under construction or in the final engineering stage, the kingdom’s vice minister of mining affairs, Khalid al-Mudaifer, said on Wednesday.
Most Gulf shares gain as Gaza ceasefire hopes rise; Egypt snaps losing streak
Elsewhere, Makkah Construction and Development surged 5.5%.
The Qatari benchmark index was up 0.3%, led by a 0.4% rise in the Gulf’s biggest lender Qatar National Bank.
Meanwhile, Hamas and Israel reached a deal for a ceasefire in Gaza that mediators said would take effect on Sunday and include a release of hostages held there during 15 months of bloodshed that devastated the Palestinian enclave and inflamed the Middle East.
In Abu Dhabi, the index added 0.2%. Dubai’s main share index lost 0.4%, hit by a 1.8% fall in utility firm Dubai Electricity and Water Authority .
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