Most stock markets in the Gulf ended lower on Wednesday, dragged down by weaker oil prices, while investors awaited key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year, and also trimmed its expectation for next year, marking the producer group’s second consecutive downward revision.
China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 barrels per day in 2024 from 700,000 bpd. Oil use in the world’s second-largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said.
Oil prices rose after dropping more than 3% on Tuesday, but still hovered near three-year lows after OPEC+ revised down its demand forecast for this year and 2025.
Saudi Arabia’s benchmark index declined 1.8%, hit by a 1.7% fall in Al Taiseer Group and a 5.1% slide in ACWA Power Co.
Elsewhere, oil giant Saudi Aramco dropped 0.7%. U.S. consumer prices - which came in post market hours - rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.
Most Gulf markets in red on mixed US job report
Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% year-on-year. Though inflation remains above the U.S. central bank’s 2% target, it has slowed considerably.
Dubai’s main share index fell 0.9%, with Emirates NBD retreating 2.7%.
In Abu Dhabi, the index decreased 0.9%.
The Qatari benchmark finished 0.2% lower, weighed down by a 2.3% fall in Qatar Gas Transport.
Outside the Gulf, Egypt’s blue-chip index advanced 1.3%, led by a 8.8% jump in Egypt Kuwait Holding.
---------------------------------------- SAUDI ARABIA lost 1.8% to 11,766 ABU DHABI fell 0.9% to 9,323 DUBAI down 0.9% to 4,346 QATAR dropped 0.2% to 10,248 EGYPT rose 1.3% to 30,486 BAHRAIN rose 0.3% to 1,954 OMAN lost 0.5% to 4,725 KUWAIT declined 1% to 7,740 ----------------------------------------
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