DUBAI: Most stock markets in the Gulf ended higher on Sunday, driven by an uptick in US manufacturing output in December, as traders assessed the potential implications of US tariffs under the incoming administration of President-elect Donald Trump
Federal Reserve data on Friday showed US manufacturing output increased 0.6% last month after an upwardly revised 0.4% rebound in November, likely as production picked up after a factory worker strike ended.
On Wednesday, softer core inflation data and comments from Fed Governor Christopher Waller on Thursday signalling potential rate cuts in 2025 boosted stocks towards the end of the week.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 0.6%, led by a 4.6% rise in ACWA Power Company and a 1.3% increase in Saudi National Bank (SNB). SNB, the kingdom’s biggest lender, is to buy back up to 16 million shares.
Meanwhile, the International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.
In Qatar, the index finished flat.
Comments
Comments are closed.