Business
Most Gulf markets gain ahead of Fed meeting
Most Gulf markets gain ahead of Fed meeting
About this update from Al Rajhi Bank
By Ateeq Shariff Most stock markets in the Gulf ended higher on Tuesday as investors looked ahead to the Federal Reserve's policy outlook and a widely anticipated U.S. interest rate cut later this week.Recent data showed that the U.S. Personal Consumption Expenditures Price Index, the Fed's preferred inflation measure, met expectations, while consumer sentiment improved in December.In November, private payrolls saw their steepest decline in more than two-and-a-half years, but jobless claims for the week ended November 28 fell to their lowest in three years.According to CME's FedWatch Tool, markets are now pricing in an 89% chance of a quarter-point rate cut at the Fed's December 9–10 meeting.The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.Saudi Arabia's benchmark index TADAWUL:TASI gained 0.7%, led by a 2.1% rise in Al Rajhi Bank TADAWUL:1120 and a 1.4% increase in Alinma Bank TADAWUL:1150.Elsewhere, Consolidated Grunenfelder Saady Holding Co TADAWUL:4147 closed 0.8% higher in its market debut.Investor sentiment is being largely underpinned by expectations of a potential rate cut at tomorrow's Fed meeting.The market outlook is further strengthened by solid fundamentals and ongoing expansion in the non-oil sector, said George Pavel, general manager at Naga.com. "However, the market could remain exposed to the downside if oil markets continue to slide," he said. Oil prices - a catalyst for the Gulf's financial markets - steadied after falling 2% in the previous session, with investors keeping a close eye on peace talks to end Russia's war in Ukraine, concerns over ample supply, and the looming U.S. rate decision.Dubai's main share index DFM:DFMGI rose 0.8%, with blue-chip developer Emaar Properties DFM:EMAAR closing 1.4% higher.In Abu Dhabi, the index ADX:FADGI added 0.5%.The Qatari benchmark QSE:GNRI was up 0.4%, with Qatar National Bank QSE:QNBK, the Gulf's biggest lender by assets, rising 1.1%.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 eased 0.1%, snapping a four-day winning streak.Saudi ArabiaTADAWUL:TASI gained 0.7% to 10,700Abu DhabiADX:FADGI rose 0.5% to 9,989DubaiDFM:DFMGI advanced 0.8% to 6,045QatarQSE:GNRI added 0.4% to 10,777EgyptEGX:EGX30 eased 0.1% to 41,941Bahrain BAHRAIN:BHBX was up 0.2% to 2,050Oman(.MSX30) climbed 1.2% t...