Major stock markets in the Gulf were mixed in early trade on Wednesday, with the Saudi index on course to snap two sessions of losses, as weak U.S. labour data bolstered bets that the Federal Reserve was likely done with its interest rate hikes.
Data on Tuesday showed U.S. job openings dropped to the lowest in nearly 2-1/2 years in July, signalling easing labour market pressures.
With the Fed highlighting that its interest rate path will be heavily dependent on data, traders are tweaking their bets based on the latest indicators.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index gained 0.3%, on track to end two sessions of losses, helped by a 0.7% rise in the kingdom’s biggest lender Saudi National Bank.
In Qatar, the index gained 0.2%, with Qatar National Bank, the Gulf’s largest lender, increasing 0.7% and Qatar Islamic Bank up 0.5%.
Oil prices - which fuel the Gulf economy - extended gains after industry data showed a large draw in crude inventories in the U.S., the world’s biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.
Dubai’s main share index fell 0.3%, weighed down by a 0.9% fall in top lender Emirates NBD.
In Abu Dhabi, the index eased 0.1%.
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