DUBAI: Most stock markets in the Gulf ended higher on Thursday following soft US labour market data that buoyed investor expectations of interest rate cuts later this year.
Data on Wednesday showed signs of a weakening US labour market, with unemployment claims increasing to 238,000, suggesting that the Fed could start cutting rates in September.
The chances of a September rate cut rose to 74% from 65% before the data, with markets pricing in 47 basis points of easing this year.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the US dollar.
Saudi Arabia’s benchmark index gained 0.6%, led by a 2.9% rise in ACWA Power Company and a 0.6% increase in Al Rajhi Bank.
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