DUBAI: Most stock markets in the Gulf ended higher on Monday ahead of a widely expected pause in interest rate hike by the US Federal Reserve, while falling oil prices capped gains.
Money markets are pricing in a 73.6% chance of the Fed keeping rates steady, and a 26.4% chance of a 25-basis-point rate hike, according to the CME FedWatch tool.
Most Gulf currencies are pegged to the US dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror US monetary policy changes.
Saudi Arabia’s benchmark index rose 0.2%, recovering from the previous session’s marginal losses. The index was lifted by gains in materials, health and finance sectors with Jabal Omar rising 2.1% and Saudi Industrial Investment gaining 3.9%.
In Abu Dhabi, the index rose 0.1%, keeping its previous sessions gains, supported by a 2.2% rise in ADNOC Drilling and a 0.8% rise in Alpha Dhabi Holding.
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