Most stock markets in the Gulf fell in early trade on Monday amid weak oil prices and caution ahead of US economic data and comments from Federal Reserve officials this week.
Saudi Arabia’s benchmark index dropped 0.6%, with ACWA Power Company losing 0.5% and aluminium products manufacturer Al Taiseer Group falling 0.5%.
Oil prices - a catalyst for the Gulf’s financial markets - were little changed, as the threat of supply disruptions from a US storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s No. 2 oil consumer.
In Qatar, the index fell 0.3%, hit by a 0.9% fall in petrochemical maker Industries Qatar losing 0.9% and Qatar Gas Transport Nakilat declining 1%. In Abu Dhabi, index eased 0.2%. Several Fed officials, including Chair Jerome Powell, are scheduled to speak this week.
Also, US consumer and producer price index data, weekly jobless claims and retail sales figures are due this week.
Traders see a 65% chance of another 25-basis-point Fed rate cut in December and a 35% chance of no change, according to the CME Fedwatch tool.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by decisions of the Fed, as most regional currencies are pegged to the US dollar.
Saudi bourse falls on oil; Qatar gains
Dubai’s main share index gained 0.5%, with top lender Emirates NBD rising 1.6% and blue-chip developer Emaar Properties climbing 1.1%.
Separately, Talabat, the Middle East business of Delivery Hero, will list on the Dubai Stock Exchange in mid-December, floating 15% of its issued shares, its German parent said on Sunday.
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