Most stock markets in the Gulf ended higher on Sunday, driven by an uptick in U.S. manufacturing output in December, as traders assessed the potential implications of U.S. tariffs under the incoming administration of President-elect Donald Trump

Federal Reserve data on Friday showed U.S. manufacturing output increased 0.6% last month after an upwardly revised 0.4% rebound in November, likely as production picked up after a factory worker strike ended.

On Wednesday, softer core inflation data and comments from Fed Governor Christopher Waller on Thursday signalling potential rate cuts in 2025 boosted stocks towards the end of the week.

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.

UAE bourses close lower ahead of fourth-quarter earnings

Saudi Arabia’s benchmark index gained 0.6%, led by a 4.6% rise in ACWA Power Company and a 1.3% increase in Saudi National Bank (SNB). SNB, the kingdom’s biggest lender, is to buy back up to 16 million shares.

Meanwhile, the International Monetary Fund (IMF) has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.

In Qatar, the index finished flat.

Outside the Gulf, Egypt’s blue-chip index gained 0.4%, with El Sewedy Electric advancing 5.1%.

SAUDI ARABIA rose 0.6% to 12,332

QATAR was flat at 10,472

EGYPT up 0.4% to 29,729

BAHRAIN was up 0.4% to 1,908

OMAN lost 0.1% to 4,615

KUWAIT was flat at 8,010