Most stock markets in the Gulf were subdued on Sunday following stronger than expected U.S. jobs data, which reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer than many traders were betting on.
Fed decisions have a significant impact on the Gulf region’s monetary policy as most of the region’s currencies are pegged to the dollar.
Friday’s Labor Department figures showed the U.S. economy created 256,000 jobs in December, beating analyst expectations of 160,000, according to a Reuters poll of economists.
Markets are now pricing in a single Fed cut no sooner than June. Prior to the jobs report, traders were expecting the Fed to cut as early as May, with a 50% probability of another cut before year-end, according to CME’s FedWatch tool.
UAE shares mixed ahead of US jobs data
In Qatar, the index fell 0.4%, dragged lower by a 1.1% fall in the Gulf’s biggest lender Qatar National Bank (QNB)
QNB is scheduled to report 2024 earnings on Monday.
Saudi Arabia’s benchmark index nudged 0.2% higher, helped by a 3.2% jump in SABIC Agri-nutrient Co.
Outside the Gulf, Egypt’s blue-chip index declined 0.6%, with Commercial International Bank losing 1.6%.
The Muscat bourse was closed for a public holiday.
SAUDI ARABIA rose 0.2% to 12,127
QATAR lost 0.4% to 10,405
EGYPT down 0.6% to 29,277
BAHRAIN eased 0.2% to 1,970
KUWAIT fell 0.6% to 7,973
Comments
Comments are closed for this article.