Most stock markets in the Gulf ended lower on Sunday after strong US jobs data lowered expectations for how much the Federal Reserve might cut interest rates this year, although the Saudi index bucked the trend to finish higher.

Data on Friday showed US employers added far more jobs in January than expected, reducing the chances of near-term Federal Reserve rate cuts.

Traders are now pricing in an 18% chance of a rate cut in March, down from 38% on Thursday, and a 67% probability for May, down from 94%, according to the CME Group’s FedWatch Tool.

Major Gulf markets gain, helped by rate cut expectations

Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the US dollar and follow the Fed’s policy moves closely.

The Qatari benchmark eased 0.1%, hit by a 1.7% drop in Qatar Navigation and a 1.3% decrease in Qatar Fuel Co.

Saudi Arabia’s benchmark index, however, gained 0.4%, with Al Rajhi Bank rising 1.2% and media giant MBC Group advancing 9.8%.

On the other hand, oil giant Saudi Aramco lost 0.2%.

Oil prices - a catalyst for the Gulf’s financial markets - fell by about 2% after the US jobs data dented hopes for near-term rate cuts, which could dampen crude demand if restrictive monetary policy curbs the economy.

Outside the Gulf, Egypt’s blue-chip index declined 3%, as most of its constituents were in negative territory including Commercial International Bank, which was down 4.5%.

SAUDI ARABIA rose 0.4% to 11,963

QATAR eased 0.1% to 10,040

EGYPT lost 3% to 27,574

BAHRAIN gained 0.4% to 2,075

OMAN down 0.1% to 4,560

KUWAIT dropped 0.7% to 7,865