DUBAI: Most stock markets in the Gulf ended higher on Sunday after US Federal Reserve Chair Jerome Powell pointed to a potential September interest rate cut during his speech at the Jackson Hole Symposium.
Powell on Friday signalled a possible rate cut next month, saying that risks to the job market were rising but also noting that inflation remained a threat and a decision was not set in stone.
Traders boosted bets on a September cut to nearly 90%, compared with 75% before Powell’s remarks.
US monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia’s benchmark index added 0.4%, helped by a 0.7% rise for oil major Saudi Aramco.
Elsewhere, ACWA Power Company finished with a 1.6% gain after obtaining financing for two large-scale combined cycle gas turbine (CCGT) power plants in Saudi Arabia, with a total capacity of 3,600 megawatts.
ACWA Power holds a 35% effective shareholding in each of the two power plants.
In Qatar, the index eased 0.2%, hit by a 1% fall for the Gulf’s biggest lender, Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index rose 0.5%, with tobacco monopoly Eastern Company advancing by 3.7%.
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