Gulf Market NewsMajor stock markets in the Gulf region saw gains in early trading on Wednesday as investors braced for important U.S. economic data and upcoming speeches by Federal Reserve policymakers that could signal further rate cuts.
Investors are eagerly awaiting preliminary revisions to US jobs data, expected later today, which could include a substantial downward adjustment. Such a revision would strengthen the case for a rate cut. In addition, US and global purchasing managers’ index (PMI) surveys will be released on Thursday.
Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday will be closely watched for clues about the potential size of a rate cut next month. Market expectations currently include a 25-basis-point rate cut, with a one-third chance of a 50-basis-point reduction. Overall, futures markets have priced in nearly 100 basis points of cuts for this year and another 100 basis points for next year.
Since most Gulf currencies are pegged to the US dollar, monetary policy decisions in the six-member Gulf Cooperation Council (GCC) are often influenced by actions of the Federal Reserve.
In Saudi Arabia, the benchmark stock index, the Tadawul All Share Index (TASI), rose 0.4%. Notable gainers included Al Taiseer Group, which rose 0.8%, and Al Rajhi Bank, which posted a 2.1% increase. However, Saudi Aramco experienced a 1.6% drop.
Oil prices, a crucial factor for Gulf financial markets, fell amid rising U.S. crude inventories and easing geopolitical tensions following a diplomatic tour of the region.
In Dubai, the main stock index, the Dubai Financial Market General Index (DFMGI), rose 0.1%, supported by a 2.4% rise in Emirates Central Cooling Systems Corp (EMPOWER). Abu Dhabi’s benchmark, the FTSE ADX General Index, also gained 0.1%.
In contrast, the Qatar benchmark index (QSI) fell 0.5 percent, mainly due to a 1.7 percent drop in shares of petrochemical manufacturer Industries Qatar.
(With contributions from Reuters.)
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