DUBAI: Stock markets in the Gulf ended mixed on Tuesday as lower oil prices tempered growing expectations of further US Federal Reserve rate cuts.
Recent US economic data have had traders pricing in a roughly 89 percent chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group’s FedWatch tool.
Investors now await US data on job openings, private payrolls, the ISM manufacturing PMI and the non-farm payrolls report on Friday for further clues on the economy’s health.
Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia’s benchmark index gained 0.6 percent, extending gains from the previous session, led by a 1.8 percent rise in Al Rajhi Bank and a 3.5 percent surge in Dar Al Arkan Real Estate Development Company.