Business
Most stock markets gain on US rate cut hopes
Most stock markets gain on US rate cut hopes
About this update from Al Rajhi Bank
By Ateeq Shariff Most stock markets in the Gulf closed higher on Monday, supported by investor optimism that the U.S. Federal Reserve will cut its interest rates further this year.The U.S. Traders are currently pricing in a 90% chance of a Fed rate cut in October, with an around 65% probability of another easing in December, according to the CME FedWatch Tool.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 1.8%, ending two sessions of losses, led by a 3.7% rise in Al Rajhi Bank TADAWUL:1120 and a 2.2% increase in oil giant Saudi Aramco TADAWUL:2222.The Saudi bourse soared 5.1% on Wednesday, marking its largest single-day gain in more than five years, driven by broad-based strength. The gains followed a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.Dubai's main share index DFM:DFMGI added 0.2%, with sharia-compliant lender Dubai Islamic Bank DFM:DFMGI rising 1.7%.In Abu Dhabi, the index ADX:FADGI eased 0.1%.Oil prices - a catalyst for the Gulf's financial markets - fell by nearly 2% as OPEC+ plans for another increase to oil output in November and the resumption of oil exports by Iraq's Kurdistan region via Turkey raised the global supply outlook.The Qatari index QSE:GNRI was 0.2%, supported by a 3.6% gain in telecom firm Ooredoo QSE:ORDS.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 finished 0.6% higher, with Emaar Misr For Development EGX:EMFD jumping 5.9%.Saudi ArabiaTADAWUL:TASI rose 1.8% to 11,434DubaiDFM:DFMGI added 0.2% to 5,869Abu DhabiADX:FADGI fell 0.1% to 9,991 QatarQSE:GNRI gained 0.2% to 11,012EgyptEGX:EGX30 up 0.6% to 36,391BahrainBAHRAIN:BHBX added 0.1% to 1,852Oman(.MSX30) rose 0.7% to 5,193Kuwait(.BKP) was up 0.6% to 9,389