Most Gulf markets end higher after US job market softens | Reuters

Most Gulf markets end higher after US job market softens | Reuters

Most stock markets in the Gulf ended higher on Sunday in response to Friday's data showing U.S. job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done raising interest rates.

U.S. job growth slowed in October in part as strikes by the United Auto Workers (UAW) union against Detroit's "Big Three" car makers depressed manufacturing payrolls, and the increase in annual wages was the smallest in nearly 2-1/2 years, pointing to an easing in labour market conditions.

Wednesday's U.S. central bank decision to leave rates unchanged and comments by Fed Chair Jerome Powell indicated to some investors that the Fed may be done raising rates.

Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.

Saudi Arabia's benchmark index (.TASI) gained 0.8%, with oil giant Saudi Aramco (2222.SE) rising 0.5% and Lumi Rental Co (4262.SE) finishing 1.7% higher.

Separately, the kingdom is expected to reconfirm in the coming days the extension of its voluntary oil-output cut of 1 million barrels per day through December, six analysts told Reuters.

The Qatari benchmark (.QSI) advanced 2.9%, its biggest intraday gain since Oct. 2022, as almost all of its constituents were in positive territory including petrochemical maker Industries Qatar (IQCD.QA), which was up 5.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 2% higher, led by a 2.1% rise in Commercial International Bank (COMI.CA).

On Friday, the lender reported third-quarter net income of 8.35 billion Egyptian pounds ($270.66 million), up 89% year-on-year.

#UAE’s non-oil business activity hits highest level in four years

UAE’s non-oil business activity hits highest level in four years

Business activity in the UAE's non-oil private sector economy hit its highest level in more than four years in October, driven by a sharp rise in new orders and output.

The seasonally adjusted S&P Global purchasing managers’ index ­– a key gauge of the nation’s non-oil economy – showed “robust improvement”, climbing to 57.7 in October, from 56.7 in September, its highest since June 2019.

A reading above the neutral level of 50 indicates growth while one below it points to a contraction.

The latest reading prompted the “greatest improvement in operating conditions” since the middle of 2019, according to the survey.

“Sharply rising new order intakes” supported a marked increase in activity, as well as further additions to purchasing and staffing levels, it said.

China’s Sinopec, #Qatar Energy Sign 27-Year LNG Supply Deal - Bloomberg

China’s Sinopec, QatarEnergy Sign 27-Year LNG Supply Deal - Bloomberg

China agreed on another decades-long liquefied natural gas deal with Qatar in a further move to safeguard its energy security.

China Petroleum & Chemical Corporation signed a 27-year liquefied natural gas deal with QatarEnergy, the Gulf company said on Saturday. The move adds to the Gulf nation’s recent flurry of new contracts from both Europe and Asia.

The joint venture between the Middle East company and Sinopec will deliver 3 million tons of LNG per year from the North Field South project to Sinopec’s receiving terminals in China. Earlier in October, Eni SpA, TotalEnergies SE and Shell Plc — also investors in Qatar’s LNG expansion — signed similar contracts.

The agreement with Sinopec follows a similar deal signed in Doha last April, when the Chinese company directly backed an LNG plant in Qatar, one of the world’s top exporters of the super-chilled fuel. This time around, Sinopec will take a 5% interest in a joint venture company with a processing capacity of 6 million tons a year, according to the release.

The agreement also marks the latest in a flurry of deals to lock-in gas supply for decades amid intensifying global competition for the fuel, particularly between Europe and Asia. Several European states are now relying more on LNG to meet energy demand after Russia cut most of its pipeline flows to the region last year.

New orders lift #Saudi non-oil business activity growth to 4-month high-PMI | Reuters

New orders lift Saudi non-oil business activity growth to 4-month high-PMI | Reuters

Growth in non-oil business activity in Saudi Arabia accelerated for a second consecutive month in October, a survey showed on Sunday, with new orders supporting an overall expansion in activity which led to a sharp rise in employment levels.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index rose to 58.4 in October from 57.2 in September - far above the 50 mark denoting growth and the highest reading since June.

New business expanded faster with the new orders subindex surging to 66.1 in October, also a four-month high, from 64.2 the previous month.

The growth in output and new business was spread across most sectors, including manufacturing and construction, the survey showed. Growth in output remained high although the subindex eased to 60.1, weaker than the long run trend.

"The surge in new orders signifies an expanding market and suggests that the non-oil sector is experiencing sustained growth and demand for its products," said Naif Al-Ghaith, chief economist at Riyad Bank.