MIDEAST STOCKS-Gulf rises after Fed hike but lags emerging markets | Reuters

MIDEAST STOCKS-Gulf rises after Fed hike but lags emerging markets | Reuters:

"Most stock markets in the Gulf rose in early trade on Thursday after the U.S. Federal Reserve hiked interest rates as expected but signalled no acceleration in the pace of monetary tightening.

However, the Gulf lagged other emerging markets around the world because of concern that low oil prices and government austerity measures will continue to weigh on corporate earnings. Among planned austerity steps, the six-nation Gulf Cooperation Council plans to introduce a 5 percent value-added tax in 2018.

The Saudi stock index rose 0.8 percent in its first 20 minutes of trade, while Dubai was up 1.3 percent and Qatar added 1.0 percent. MSCI's emerging market index climbed 1.7 percent.

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