Askume, Sept 10 – Major Gulf stock markets rose on Tuesday, as key U.S. inflation data could influence the scale of the Federal Reserve’s possible interest rate cut next week.
Investors are focused on Wednesday’s US consumer price index report, which could clarify whether the Federal Reserve will cut interest rates by a substantial 50 basis points at its meeting on September 17-18.
Market pricing indicates that the Federal Reserve is expected to cut interest rates by about 110 basis points this year.
Monetary policy in the six Gulf Cooperation Council members, including the United Arab Emirates, is generally guided by Federal Reserve policy decisions, as most currencies in the region are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index (.TASI) rose 0.2%, Al Rajhi Bank (1120.SE) gained 0.3% and Al Rajhi Bank (1180.SE) added 0.7%. Saudi National Bank, the country’s largest bank
Dubai’s main stock index (.DFMGI) rose 0.7%, while top bank Emirates National Bank (ENBD.DU) gained 2.3%.
The Abu Dhabi index (.FTFADGI) rose 0.5%.
The UAE economy is expected to grow 3.4% in the first quarter of 2024 compared to the same period last year, according to preliminary government estimates published by state news agency WAM on Monday.
Qatar’s benchmark index (.QSI) closed 0.5% higher, with the Gulf’s biggest bank, Qatar National Bank (QNBK.QA) rising 1%.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) fell 0.9%, helped by Ezz Steel.(ESRS.CA) fell 4.5% .
Egypt’s annual urban consumer price inflation unexpectedly rose to 26.2% in August from 25.7% in July, according to data released on Tuesday by statistics agency CAPMAS.
