Sept 17 (Askume) – Most major Bay Area stock markets rose in early trade on Tuesday, as bets mounted in favour of a sharp rate cut, ahead of a widely expected rate cut by the Federal Reserve on Wednesday.
The market currently believes that the probability of a 50 basis point cut in interest rates is 69 percent. Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, is generally in line with the Fed’s decisions, as most regional currencies are pegged to the US dollar. Fed watch
Dubai’s main stock index (.DFMGI) rose 0.1%, helped by a 0.6% rise in property developer Emaar Properties (EMAR.DU) .
The Abu Dhabi index (.FTFADGI) rose 0.1%.
Saudi Arabia’s benchmark index (.TASI) fell 0.1%, buoyed by aluminium products maker Al Tayseer Group.(4143.SE) fell 0.2% .
However, Saudi Arabian Mining Company (Maaden) (1211.SE) and Bahrain Aluminum Company (Alba)(ALBH.BH) shares rose 4.8%, a day after the company signed a non-binding agreement to pursue a potential business combination.
On Sunday, US aluminium producer Alcoa said it would sell a 25.1% stake in its joint venture with Madden to the company for about $1.1 billion in cash and stock.
Qatar’s benchmark index (.QSI) rose 0.2%, while Qatar National Bank (QNBK.QA), the Gulf region’s biggest bank, added 0.6%.
Oil prices – the catalyst for Gulf financial markets – extended gains as the market focused on concerns about US output after Hurricane Francine and expectations of a drawdown in crude inventories.
