DUBAI: Most stock markets in the Gulf ended higher on Thursday a day after a global sell-off as investors remained cautious ahead of US data, although the Saudi index extended losses from the previous session.
Investors are looking for clues to the health of the US economy and the labour market, with markets on edge from Tuesday’s weak manufacturing figures and Wednesday’s mixed labour data.
The main focus for the week will be Friday’s hotly anticipated August nonfarm payrolls report, which is expected to provide clues on where the economy is headed and whether the Fed will cut rates by a quarter or half a percentage point this month.
Markets are now pricing in a 44% chance of a 50 basis point cut at the bank’s Sept. 17-18 meeting, up from 38% a day earlier, the CME FedWatch tool showed.
Traders are now anticipating 110 bps of easing this year from the three remaining Fed meetings.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed’s decisions, as most regional currencies are pegged to the US dollar.
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