Stock markets in the Gulf ended mixed on Monday after a robust U.S. jobs report dashed expectations of a near-term interest rate cut from the Federal Reserve.
Data on Friday showed U.S. job growth accelerated in January and wages increased by the most in nearly two years, signs of persistent strength in the labour market that encourage the Fed to start easing later rather than sooner.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely. Fed chair Jerome Powell said in an interview aired on Sunday he wanted to wait to be a little more confident inflation was sustainably falling before moving interest rates lower.
Saudi Arabia's benchmark index gained 0.5%, with Saudi Telecom Co and a 1.3% increase in Saudi Arabian Mining Co. On the other hand, oil giant Saudi Aramco dropped 0.5%.
Oil prices - a catalyst for the Gulf's financial markets - slipped again on Monday as a strong U.S. job report which capped sharp falls last week dampened hopes of swift rate cuts, despite a U.S. pledge to continue air strikes in the Middle East which have kept geopolitical tensions high. Dubai's main share index edged 0.1% higher, helped by a 2.2% gain in Tecom Group.
In Abu Dhabi, the index dropped 0.3%. Non-oil business activity in the UAE eased to a five-month low in January, a survey showed on Monday, as the pace of growth in new orders and employment slowed.
The Qatari benchmark declined 1.5%, as almost all its constituents were in negative territory including Qatar Islamic Bank, which was down 2.5%.
Outside the Gulf, Egypt's blue-chip index added 0.3%, helped by a 10.3% increase in Talaat Mostafa Group.
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