DUBAI: Saudi Arabia’s stock market ended higher on Sunday as investors raised their bets on the prospect of a US interest rate cut this month after US 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.
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 US 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.
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