Business
Gulf markets end mixed on further US rate cut hopes, falling oil
Gulf markets end mixed on further US rate cut hopes, falling oil
About this update from Al Rajhi Bank
By Ateeq Shariff Stock markets in the Gulf ended mixed on Tuesday as lower oil prices tempered growing expectations of further U.S. Federal Reserve rate cuts.Recent U.S. economic data have had traders pricing in a roughly 89% chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group's FedWatch tool.Investors now await U.S. 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 U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.Saudi Arabia's benchmark index TADAWUL:TASI gained 0.6%, extending gains from the previous session, led by a 1.8% rise in Al Rajhi Bank TADAWUL:1120 and a 3.5% surge in Dar Al Arkan Real Estate Development Company TADAWUL:4300.Dar Global LSE:DAR, the international arm of Dar Al Arkan Real Estate Development, plans to build a $1 billion Trump Plaza project in Saudi Arabia's Jeddah as U.S. President Donald Trump's family business expands in the Gulf, the company said on Monday.The Saudi market's recovery could be sustained by several factors, including the solid fundamentals of the non-oil sector, the potential for continued monetary policy easing, and the easing of foreign ownership rules, said Daniel Takieddine, Co-founder and CEO of Sky Links Capital Group."Conversely, uncertainty and continued volatility in oil prices at current levels remain a risk to broader market sentiment, especially if prices decline further."The Saudi index surged 7.5% in September 2025, marking its largest monthly gain since January 2022.However, oil giant Saudi Aramco TADAWUL:2222 declined 1.5%.Oil prices - a catalyst for the Gulf's financial markets - fell ahead of another anticipated production increase by OPEC+ and as the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced market expectations of a supply surplus.In Qatar, the index QSE:GNRI added 0.5%, with Qatar National Bank QSE:QNBK, the Gulf's biggest lender by assets, gaining 2%.The Abu Dhabi index ADX:FADGI finished 0.2% higher.Dubai's main share index DFM:DFMGI dropped 0.5%, hit by a 1.9% fall in blue-chip developer Emaar Properties DFM:EMAAR.The emirate's index fell 3.7% in September, extending its monthly losses.According to Takieddine, the Dubai market remains in ...