Saudi Arabia’s stock market ended higher on Sunday as investors raised their bets on the prospect of a U.S. interest rate cut this month after U.S. payrolls data showed strong job growth in November, although the Qatari index retreated.
Nonfarm payrolls increased by 227,000 jobs last month after increasing by an upwardly revised 36,000 in October, in a month hit by hurricanes and strikes. Economists polled by Reuters had forecast payrolls accelerating by 200,000 jobs.
Traders now see an 87% chance of a 25-basis-point cut at the Federal Reserve’s December meeting, versus a 72% chance before the payrolls data.
UAE stocks mixed as investors eye US payrolls data
The Fed’s decisions significantly impact the Gulf region’s monetary policy, as most currencies in the region, including Saudi Arabia’s, are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index edged 0.2% higher, helped by a 2.3% rise in aluminium products manufacturer Al Taiseer Group.
The country’s economy grew 2.8% in the third quarter from the same period a year earlier, supported by an increase in non-oil activity, government data showed on Sunday.
In Qatar, the index eased 0.3%, hit by a 1.9% fall in the Gulf’s biggest lender Qatar National Bank.
Meanwhile, Qatar - the world’s largest liquefied natural gas (LNG) producer - has no concerns about U.S. President-elect Donald Trump’s promise to lift a cap on LNG exports, Qatar’s Energy Minister Saad al-Kaabi said on Saturday, adding his country would cope with any competition.
Outside the Gulf, Egypt’s blue-chip index gained 0.7%, led by a 4.9% jump in Telecom Egypt.
Inflation in Egypt is forecast to have eased to 26.4% in November as food prices cooled, according to a poll released on Sunday.
SAUDI ARABIA rose 0.2% to 11,955
QATAR gained 0.7% to 10,118
EGYPT up 0.7% to 31,061
BAHRAIN eased 0.1% to 2,036
OMAN fell 0.5% to 4,548
KUWAIT dropped 0.2% to 7,792
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