Business
Most Gulf markets gain on US rate cut bets
Most Gulf markets gain on US rate cut bets
About this update from Al Rajhi Bank
Most Gulf stock markets opened higher on Wednesday, supported by slightly cooler-than-expected U.S. inflation data that strengthened expectations for future interest rate cuts, though persistent geopolitical tensions kept gains in check.U.S. consumer prices rose in December, driven by increased expenses for housing and groceries, reinforcing analysts' views that the Federal Reserve would hold interest rates this month.U.S. President Donald Trump welcomed the inflation figures, reiterating his push for the U.S. Federal Reserve Chair Jerome Powell to cut interest rates "meaningfully."Investors expect two 25-basis-point rate cuts this year, with the earliest in June. Gulf markets often track shifts in U.S. rate expectations, as most regional currencies are pegged to the dollar.Saudi Arabia's benchmark index TADAWUL:TASI rose 0.2%, with Al Rajhi Bank TADAWUL:1120 gaining 0.5% and Saudi National Bank TADAWUL:1180, the country's biggest lender by assets, putting on 0.6%.Dubai's main share index DFM:DFMGI advanced 0.5%, with utility firm Dubai Electricity and Water Authority DFM:DEWA rising 2.1%.In Abu Dhabi, the index ADX:FADGI was up 0.1%. Iran in turn accused Trump of encouraging political destabilization and inciting violence.The Qatari benchmark QSE:GNRI lost 0.4%, hit by a 0.8% fall in petrochemical maker Industries Qatar QSE:IQCD.