DUBAI: Gulf stock markets closed on positive trajectories on Sunday, propelled by heightened investor expectations surrounding potential additional reductions in US interest rates.
Investors also reacted positively to Palestinian group Hamas’ agreement to some of the terms in US President Donald Trump’s plan to end the war in Gaza, though US Secretary of State Marco Rubio said the war in Gaza has “not yet” ended, describing the release of the hostages held by Hamas as a first phase.
The key US non-farm payrolls report, originally slated for release on Friday, has been postponed, leaving investors to lean on alternative indicators that point to a cooling labor market and sustain expectations of an imminent rate cut.
Investors are pricing in a 97 percent probability of a 25-basis-point rate reduction in October and a 85 percent likelihood of another similar cut in December, according to CME Group’s FedWatch tool.
The Fed’s stance carries heavy clout in the Gulf, where most currencies are pegged to the US dollar, anchoring regional monetary policy.
Comments
Comments are closed for this article.