Most major stock markets in the Gulf rose on Thursday after soft U.S. economic data raised bets that the Federal Reserve would pause interest rate hikes next month, although volatile energy prices weighed on investor sentiment.
A slew of U.S. economic indicators generally surprised to the downside, adding to bets that the Fed is done tightening and rate cuts next year could amount to more than 100 basis points.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.
Dubai’s main share index gained 0.4%, led by a 0.7% rise in blue-chip developer Emaar Properties and a 1% increase in budget airliner Air Arabia.
In Qatar, the main share index gained 0.2%, with petrochemical maker Industries Qatar up 2.7%.
Major Gulf markets mixed on Fed pause bets, stronger oil
The Abu Dhabi index added 0.4%.
Saudi Arabia’s benchmark stock index slipped 0.2%, weighed down by a 1.2% fall in oil giant Saudi Aramco.
Oil prices, which fuel the Gulf economy, eased after data showed China’s manufacturing activity shrank for the fifth straight month, and as investors cautiously awaited a U.S. personal consumption expenditure report later in the day for clues on the interest rate outlook.
Separately, Saudi Arabia’s Lumi, one of the largest auto rental firms in the kingdom, said on Wednesday that it could raise up to 1.089 billion riyals ($290.34 million) after a price range was set for its initial public offering.
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