Major stock markets in the Gulf rose in early trade on Thursday, supported by climbing oil prices and anticipation of next week’s U.S. Federal Reserve meeting, as investors look to upcoming data for clearer signals on the central bank’s interest rate path.
Oil prices firmed after Ukrainian attacks on Russia’s oil infrastructure signalled potential supply constraints, and stalled peace talks tempered expectations of a deal restoring Russian oil flows to global markets, though weak fundamentals kept gains limited.
Saudi Arabia’s benchmark index gained 0.5%, with Saudi Arabian Mining Company climbing 1% while oil giant Saudi Aramco rising 0.4%.
The kingdom’s non-oil private sector business activity expanded at its fastest rate in 10 months in November, driven by robust demand and increased hiring, although new order growth slowed from the previous month, a survey showed on Wednesday.
Dubai’s main share index rose 0.3%, helped by a 1.9% gain in blue-chip developer Emaar Properties and a 1% increase in top lender Emirates NBD.
In Abu Dhabi, the index added 0.4%.
U.S. private payrolls fell by 32,000 in November, the steepest decline in more than two-and-a-half years, Wednesday’s ADP report showed. However, still-low layoff levels indicate this weakness might not accurately represent the labour market’s underlying strength.
Traders now see an 89% probability of an interest rate cut next week, based on the CME FedWatch tool, and major brokerages likewise anticipate easing at the December 9–10 meeting.
The Qatari index rose 0.2%, with AlRayan Bank advancing 1.6%.
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