DUBAI: Stock markets in the Gulf ended higher on Sunday, led by the Qatar index, after slowing US jobs growth in April raised hopes of early interest rate cuts by the US Federal Reserve.
The Labor Department’s employment report showed the US economy added fewer jobs than expected, while the unemployment rate ticked higher and wage growth unexpectedly cooled.
The report prompted investors to raise bets the Fed would implement its first rate reduction in September.
Most Gulf currencies are pegged to the dollar, and any US monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index bounced back after three straight sessions of losses and ended 0.8% higher with all sectors in the positive territory.
Qatar National Bank, the region’s largest lender, rose 1.2% and Industries Qatar gained 0.7%.
Saudi Arabia’s benchmark index was up for a second straight session and rose 0.2%, lifted by gains in finance, industry, consumer discretionary and energy sectors.
Al Rajhi Bank, the world’s largest Islamic lender, and Saudi National Bank, the kingdom’s biggest lender climbed 1.5% each.
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