Most major stock markets in the Gulf edged higher in early trade on Thursday, as rising expectations of an end to the US Federal Reserve’s rate hike cycle boosted risk appetite.
US retail sales fell in October, though by less than expected, after months of strong gains, pointing to slowing demand that could further strengthen expectations that the Federal Reserve is done hiking interest rates.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the US Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index rose 0.1%, helped by a 0.7% rise in Al Rajhi Bank. However, oil giant Saudi Aramco eased 0.2%.
Oil prices - a catalyst for the Gulf’s financial markets - fell, extending losses from the previous session, as signals of higher supply from the United States met worries about lackluster energy demand from China.
Dubai’s main share index added 0.3%, with toll operator Salik Co gaining 1.7% and Emaar properties rising 0.7%.
Gulf markets in black on interest rate cuts bets
Dubai’s main airport expects a surge in its Q4 traffic, due in part to a rebound in passengers from China, the CEO of operator Dubai Airports said on Wednesday, as the Gulf hub remains on track to surpass pre-pandemic numbers for the full year.
In Abu Dhabi, the index was flat.
The Qatari benchmark increased 0.4%, driven by a 0.9% rise in petrochemical maker Industries Qatar.
Among other gainers, Qatar Islamic Bank was up 0.9%.
The lender is planning to issue US dollar-denominated five-year Islamic bonds, fixed-income news service IFR reported on Wednesday.
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