Stock markets in the Gulf were mostly subdued on Sunday, weighed down by concerns that the U.S. Federal Reserve will make fewer rate cuts next year, though a cooler-than-expected inflation report kept the losses in check.
Markets were jolted after the Fed forecast only two rate reductions in 2025 and raised its inflation estimate, in a nod to the economy’s continued resilience and still-high price rises.
Following the November inflation data, traders raised their rate cut bets for 2025, now expecting a rate cut first in March and then again by October.
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index was down for a second straight session, falling 0.4%, with most sectors in the red.
UAE markets gain ahead of key US inflation data
Healthcare provider Dr Sulaiman Al Habib Medical Services slipped 4% and Saudi Aramco lost 1.9%.
SABIC Agri-Nutrients Company gained 3% after the fertilizer and chemicals maker declared a cash dividend of 3 riyals per share for the second half of the year and said it has amended the protocol for declaration and distribution of interim dividends.
The Qatari benchmark index rose 1% as it resumed trading after a two-day break for a national holiday, lifted by gains in almost all stocks. Qatar Islamic Bank climbed 1.6%, while Industries Qatar gained 0.9%.
Meanwhile, Qatar’s energy minister told the Financial Times the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.
Outside the Gulf, Egypt’s blue-chip index eased 0.5% with Commercial International Bank shedding 0.5% and E-Finance for Digital falling 2.5%.
SAUDI ARABIA down 0.4% to 11,849
KUWAIT rose 0.2% to 7,818
QATAR gained 1% to 10,559
EGYPT down 0.5% to 30,373
BAHRAIN fell 0.3% to 1,994
OMAN lost 0.5% to 4,488
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