Sept 16 (Askume) – Major Gulf stock markets rose in early trade on Monday on expectations of a U.S. interest rate cut this week, while a Saudi index rose for a third consecutive session.
The Federal Reserve’s two-day monetary policy meeting starting on Tuesday will be the main topic this week. The central bank is expected to begin an easing cycle, giving regional central banks a chance to consider cutting interest rates.
According to the CME FedWatch tool, the market expects a 59% chance of a 50 basis point (bps) rate cut and a 41% chance of a 25 basis point rate cut.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, generally follows the Fed’s decisions, as most regional currencies are pegged to the US dollar.
Saudi Arabia’s benchmark index (.TASI) rose 0.2%, with Ma’Aden (1211.SE) gaining 2%.
U.S. aluminum producer Alcoa ( AA.N) said on Sunday it would sell a 25.1% stake in its Madden joint venture to Madden for $1.1 billion.
The deal includes approximately 86 million Madden shares and $150 million in cash, with the deal expected to close in the first half of 2025, Alcoa said in a statement.
Elsewhere, oil giant Saudi Aramco (2222.SE) rose 0.4%.
Oil prices rose in Asian trade on the prospect of a rate cut by the Federal Reserve, a catalyst for Gulf financial markets , but gains were limited due to ongoing demand concerns and weak Chinese data.
Dubai’s main stock index (.DFMGI) rose 0.4%, led by Shariah-compliant bank Dubai Islamic Bank.(DISB.DU) rose 1.1% .
The Abu Dhabi index (.FTFADGI) rose 0.5%.
Qatar’s benchmark index (.QSI) rose 0.1%, benefiting from a 0.4% rise in Qatar National Bank (QNBK.QA), the Gulf region’s biggest bank .
