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Gulf Markets show modest gains on oil strength ahead of US rate decision
Gulf Markets show modest gains on oil strength ahead of US rate decision
About this update from Al Rajhi Bank
Most Gulf stock markets inched up in early trade on Tuesday, buoyed by firmer oil prices and growing bets of a U.S. rate cut later this month. Saudi Arabia's benchmark index TADAWUL:TASI edged up 0.1% in choppy trade as stronger oil prices lent support to the oil-sensitive bourse.Index heavyweights Saudi Arabian Mining TADAWUL:1211 and the oil behemoth Saudi Aramco TADAWUL:2222 advanced 1.3% and 0.1%, respectively.Oil - a key catalyst for Gulf markets - rose after OPEC+ announced plans to increase output by less than market participants had anticipated, boosting sentiment across the region.In the UAE, Dubai's main index DFM:DFMGI added 0.1%, helped by a 0.6% rise in Emirates NBD Bank DFM:EMIRATESNBD.Abu Dhabi index ADX:FADGI was also up 0.1%, with modest gains in heavyweight stocks helping to partially reverse a recent pullback.Abu Dhabi Commercial Bank rose 0.9%, rebounding from a 7.5% plunge in the previous session — its steepest single-day drop in over three years — after announcing a 6.1 billion dirhams rights issue priced at a 30% discount.In contrast, Qatar's benchmark index QSE:GNRI fell 0.2%, pressured by losses in financials. Qatar National Bank QSE:QNBK, the region’s largest lender, declined nearly 1%.Investors continue to keep a close watch on the Fed, with traders fully pricing in a 25-basis-point rate cut and assigning a 10% probability to a jumbo 50-bp cut, according to the CME FedWatch tool. The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.