DUBAI: Most stock markets in the Gulf ended higher on Wednesday as expectations of an end to a global rate hike cycle spurred investors following benign inflation readings in the United States.
On Tuesday, data showed US headline consumer prices were flat in October, against expectations for a 0.1% rise. Core CPI, at 0.2%, also came in below a forecast of 0.3%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the US Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 1.5%, extending gains from the previous session, led by a 3.9% rise in Al Rajhi Bank and a 4.5% increase in Saudi Telecom Co.
The Saudi stock market extended its gains but could find some resistance near its previous peak, said George Pavel, General Manager at Capex.com Middle East.
“At the same time, oil market performance could continue to weigh on sentiment.”
Oil prices - a catalyst for the Gulf’s financial markets - dipped amid signs the United States, the world’s biggest oil producer, is at peak production, offsetting positive crude demand signals from top consumer China.
Comments
Comments are closed for this article.