Most stock markets in the Gulf ended higher on Thursday ahead of key US inflation data, due later in the day, that will offer clues on the Federal Reserve’s timeline for monetary policy easing.
Investors are looking at the US Consumer Price Index report (CPI) where a soft print could lift rate-cut bets for March. CME’s FedWatch Tool is currently showing a 66% chance of a cut.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the US dollar.
Most Gulf markets gain ahead of US inflation data
The Qatari benchmark edged 0.2% higher, supported by a 4.3% leap in Qatar Navigation.
In Abu Dhabi, the index closed 0.5% higher, with the United Arab Emirates’ biggest lender, First Abu Dhabi Bank advanced 2.5%, rising for the fifth consecutive session.
Saudi Arabia’s benchmark index gave up early gains to finish 0.2% lower, falling for a fourth consecutive session, weighed down by a 3.7% slide in insurance firm Tawuniya .
Separately, the kingdom launched new residency programs to attract skilled professionals and investment as the Gulf country forges ahead with its plan to pivot its economy away from fossil fuels.
Dubai’s main share index, dropped 0.3% retreating from a three-month high hit in the previous session, driven down by a 1.5% fall in blue-chip developer Emaar Properties .
Outside the Gulf, Egypt’s blue-chip index added 0.2%, with Commercial International Bank rising 0.6%.
Egypt’s annual core inflation eased to 34.2% in December from 35.9% in November, central bank data showed on Wednesday.
SAUDI ARABIA fell 0.2% to 12,116
ABU DHABI rose 0.5% to 9,845
DUBAI down 0.3% to 4,118
QATAR gained 0.2% to 10,466
EGYPT up 0.2% to 25,519
BAHRAIN dropped 0.2% to 1,986
OMAN was flat at 4,607
KUWAIT advanced 1.2% to 7,935
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