DUBAI: Stock markets in the Gulf closed mixed on Wednesday amid rising oil prices and expectations of additional US interest rate reductions.
Oil prices, the catalyst for the Gulf’s financial markets, climbed more than 1 percent, helped by a smaller-than-expected output hike from producer group OPEC+ next month, though concerns about oversupply capped gains.
Investor sentiment was further buoyed after the World Bank lifted its growth outlook for the region encompassing the Middle East, North Africa, Afghanistan and Pakistan for 2025. It, however, trimmed its forecast for next year, citing conflict and lower oil production in Iran and Libya.
Dubai’s main share index rose 0.3 percent, helped by a 1.8 percent rise in top lender Emirates NBD. As the US government shutdown extends into a second week, investors have had to rely on secondary, independently produced US data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month’s policy meeting.