Most Gulf markets gain as interest rate fears ease

DUBAI: Most Gulf stock markets closed higher on Wednesday, tracking oil and global equities after comments from the head of the US Federal Reserve boosted risk appetite, though the Qatar index fell amid energy price volatility. The Fed’s Jerome Powell told a Q&A session at the Economic Club of Washington that he expects 2023 to be a year of “significant declines in inflation”, raising investor hopes for a slowing in the pace of increases to interest rates. Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the US dollar and follow the Fed’s policy moves closely, exposing the region to direct impact from monetary tightening in the world’s largest economy.

Saudi Arabia’s benchmark index gained 0.4%, snapping a seven-day losing streak, with oil behemoth Saudi Aramco climbing 1.3% while petrochemicals giant Saudi Basic Industries rose by 1.9%.