DUBAI: Most stock markets in the Gulf ended higher on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations that US rate cuts were not far off.
Data for May showed the Fed’s preferred measure of inflation did not increase at all that month, while the 12-month rate of price increases has ebbed to 2.6%, still above the US central bank’s 2% target but on the way down after a scare in the first few months of the year.
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 US dollar.
Dubai’s main share index gained 0.4%, with Emirates Central Cooling Systems rising 2.7% and toll operator Salik gaining 1.4%.
In Abu Dhabi, the index was up 0.1%, with ADNOC Drilling gaining 0.5% after the firm was awarded a $733 million contract for three rigs.
The Qatari benchmark added 0.5%, led by a 0.6% gain in Qatar National Bank and a 0.9% increase in petrochemical maker Industries Qatar.
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