Stock markets in the Gulf put in a mixed performance in early trade on Monday amid rising oil prices while investors combed through US economic data for signs of when the Federal Reserve will start cutting interest rates this year.
Oil prices - a catalyst for the Gulf’s financial markets - rose on expectations of tighter supply from OPEC+ cuts, attacks on Russian refineries and upbeat Chinese manufacturing data.
Brent was up 0.3% at $87.3 a barrel by 0815 GMT.
Saudi Arabia’s benchmark stock index advanced 0.3% supported by gains in most sectors, with Acwa Power rising 4.7% and Saudi Arabian Mining gaining 2.2%.
Among other gainers, oil major Saudi Aramco and Al Rajhi Bank, the world’s largest Islamic lender, both added 0.5%.
In Abu Dhabi, the benchmark stock index was up 0.1%, with Abu Dhabi National Energy Co gaining 1% and the UAE’s largest lender First Abu Dhabi Bank adding 0.9%.
Dubai’s benchmark stock index retreated 0.5% weighed down by a 2.5% drop in Tecom Group and a 4% decline in Mashreqbank.
Gulf bourses drop; Egypt extends decline
The Qatari benchmark index was little changed with Qatar Islamic Bank rising 1.6% and Qatar Electricity and Water adding 1.5%, while Qatar International Islamic Bank and United Development Co fell 6.5% and 5.8%, respectively.
The markets will focus on US ISM manufacturing data, ISM services, and the closely-watched non-farm payrolls report due this week to get further clarity on the Fed’s interest rate cuts timeline.
Most Gulf currencies are pegged to the dollar, and any US monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
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