Most stock markets in the Gulf ended higher on Monday as investors looked to minutes of the U.S. Federal Reserve’s most recent meeting and payrolls data due later in the week for clues on the central bank’s interest rate path.
Analysts expect U.S. December payrolls to have risen by 150,000, with unemployment holding at 4.2%. The data will be released on Friday.
Minutes of the Fed’s December meeting due on Wednesday will show whether its “dot plot” rate targets have shifted, while at least seven top policymakers speak this week including influential Fed Governor Christopher Waller.
Fed decisions have a significant impact on the Gulf region’s monetary policy as most of its currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index rose 0.3%, with the country’s biggest lender Saudi National Bank climbing 1.1% and Al Rajhi Bank closing 0.3% higher.
Oil prices - a catalyst for the Gulf’s financial markets - steadied at their highest since mid-October as colder weather spurred buying while further support came from expectations of tighter sanctions on Iranian and Russian oil exports.
Most Gulf markets in red; Saudi gains
Separately, Saudi Arabia is tapping global debt markets with a planned three-part bond sale on Monday, fixed income news service IFR reported, with proceeds expected to help cover its budget deficit and pay down debt.
Dubai’s main share index advanced 1.3%, ending at its highest in over 10 years, buoyed by a 4.9% surge in top lender Emirates NBD.
In Abu Dhabi, the index finished 1.1% higher.
The United Arab Emirates’ non-oil private sector expanded at its fastest pace in nine months in December, driven by strong demand and increased business activity, a survey showed on Monday.
Outside the Gulf, Egypt’s blue-chip index dropped 0.8%, ending a three-day winning streak, hit by a 4.1% slide in tobacco monopoly Eastern Company.
-------------------------------------- SAUDI ARABIA rose 0.3% to 12,105 Abu Dhabi up 1.1% to 9,428 Dubai leapt 1.3% to 5,191 QATAR added 0.1% to 10,486 EGYPT fell 0.8% to 29,930 BAHRAIN eased 0.1% to 1,979 OMAN up 0.2% at 4,580 KUWAIT added 0.1% to 7,897 --------------------------------------
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