Most stock markets in the Gulf ended higher on Sunday in response to Friday’s data showing US job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done raising interest rates.
US job growth slowed in October in part as strikes by the United Auto Workers (UAW) union against Detroit’s “Big Three” car makers depressed manufacturing payrolls, and the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labour market conditions.
Wednesday’s US central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates.
UAE shares rise as Fed pause improves sentiment
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the US dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index gained 0.8%, with oil giant Saudi Aramco rising 0.5% and Lumi Rental Co finishing 1.7% higher.
Separately, the kingdom is expected to reconfirm in the coming days the extension of its voluntary oil-output cut of 1 million barrels per day through December, six analysts told Reuters.
The Qatari benchmark advanced 2.9%, its biggest intraday gain since Oct. 2022, as almost all of its constituents were in positive territory including petrochemical maker Industries Qatar, which was up 5.5%.
Outside the Gulf, Egypt’s blue-chip index closed 2% higher, led by a 2.1% rise in Commercial International Bank .
On Friday, the lender reported third-quarter net income of 8.35 billion Egyptian pounds ($270.66 million), up 89% year-on-year.
SAUDI ARABIA rose 0.8% to 10,939
QATAR advanced 2.9% to 9,995
EGYPT climbed 2% to 23,095
BAHRAIN eased 0.2% to 1,914
OMAN gained 0.7% to 4,524
KUWAIT added 1.4% to 7,270
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