Gulf bourses end mixed with focus on Fed

DUBAI: Stock markets in the Gulf ended mixed on Thursday as investors assessed the monetary policy and inflation outlook in the world’s largest economy.

Traders responded to a US inflation print that was in line with expectations by ramping up bets on a Federal Reserve rate cut next month, though there was less certainty on what would happen after that given Donald Trump’s return to office.

The Fed’s decisions have a significant impact on the region’s monetary policy, as most currencies there are pegged to the US dollar.

Saudi Arabia’s benchmark index declined 1.2%, weighed down by a 0.4% fall in aluminium products manufacturer Al Taiseer Group. Saudi Telecom Company (STC) dropped 2.2%.