Oil prices and US interest rate cuts have mixed the Gulf markets.
September 30 - The Gulf stock markets were mixed early on Tuesday, as lower oil prices dampened expectations for further Federal Reserve rate reductions.
According to CME Group’s FedWatch tool, traders have priced in an 89% chance that the Fed will reduce rates by 25 basis points at its next meeting in October.
Investors are now awaiting U.S. data about job openings, payrolls in the private sector, the ISM Manufacturing PMI and the Non-Farm Payrolls Report on Friday to get more clues about the economy's state.
The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.
Saudi Arabia's benchmark stock index rose 0.6% and is on track to continue its gains from the previous day. Al Rajhi Bank's 0.9% gain and Dar Al Arkan Real Estate Development Company's 8% increase were the main contributors.
Dar Global, the international arm Dar Al Arkan Real Estate Development, plans to build the $1 billion Trump Plaza in Saudi Arabia’s Jeddah. This is in response to the expansion of the family business of U.S. president Donald Trump in the Gulf.
Qatar Gas Transport Co. grew 2.2%, while the index in Qatar increased 0.5%.
Dubai's main stock index fell 0.9% due to a fall of 1.1% in blue-chip developer Emaar Properties.
The Abu Dhabi Index fell by 0.2%.
Oil prices, a key catalyst for Gulf financial markets, fell after OPEC+ announced another production increase and as oil exports to Iraq's Kurdistan region resumed via Turkey. This reinforced the view that a supply surplus was imminent. (Reporting by Ateeq Shariff in Bengaluru)
(source: Reuters)
