DUBAI: Most Gulf stock markets closed higher on Tuesday as investor optimism over potential US interest rate cuts and steady oil prices eclipsed concerns over the US government shutdown.
As the shutdown extends into its second week, investors are turning to private and alternative economic data to gauge the US interest rate trajectory, with a 25 basis point rate cut at this month’s policy meeting appearing nearly fully priced in. The Fed’s stance carries heavy clout in the Gulf, where most currencies are pegged to the US dollar, anchoring regional monetary policy.
Dubai’s main share index rose 0.5 percent, with top lender Emirates NBD advancing 2.6 percent.
In Abu Dhabi, the index finished 0.2 percent higher.
Oil prices - a catalyst for the Gulf’s financial markets - were steady as investors weighed a smaller than expected increase to OPEC+ output in November against a backdrop of possible oversupply.
The Qatari index added 0.2 percent, supported by a 0.8 percent gain in Qatar Islamic Bank.
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