Business
Most Gulf markets gain ahead of Fed verdict
Most Gulf markets gain ahead of Fed verdict
About this update from Al Rajhi Bank
By Ateeq Shariff Most stock markets in the Gulf ended higher on Wednesday as investors awaited remarks from Federal Reserve Chair Jerome Powell for policy clues. As of Wednesday, markets are almost fully pricing in a 25-basis-point interest rate cut following the U.S. central bank's two-day Federal Open Market Committee meeting, despite the committee being more divided than it has been in years.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 stock index TADAWUL:TASI gained 0.3%, with ACWA Power Company TADAWUL:2082 gaining 4%.However, oil giant Saudi Aramco TADAWUL:2222 eased 0.1%.The Fed meeting will be especially important for the guidance it offers on monetary policy and economic projections for the year ahead, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group."If the Fed signals readiness for further rate cuts next year, it would likely have a positive impact on GCC economies and corporate earnings. Consequently, the Saudi market may find further support following the decision."Dubai's main share index DFM:DFMGI gained 0.5%, led by a 2.7% rise in top lender Emirates NBD DFM:EMIRATESNBD.In Abu Dhabi, the index ADX:FADGI eased 0.1%. The Qatari benchmark QSE:GNRI lost 0.1%.The Abu Dhabi stock market continues to face headwinds from lower oil prices and a negative outlook for the crude market heading into 2026, said Takieddine.Oil prices - a catalyst for the Gulf's financial markets - held steady after falling about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates.Crude prices are hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 added 0.3%. Saudi ArabiaTADAWUL:TASI gained 0.3% to 10,726Abu DhabiADX:FADGI eased 0.1% to 9,981DubaiDFM:DFMGI was up 0.5% to 6,076QatarQSE:GNRI added 0.3% to 10,807EgyptEGX:EGX30 rose 0.3% to 42,053BahrainBAHRAIN:BHBX edged 0.1% higher to 2,051Oman(.MSX30) lost 0.2% to 5,947Kuwait(.BKP) firmed 0.1% to 9,654