Thursday 16 May 2024

Gulf markets join global rally as US rate cut hopes rise | Reuters

Gulf markets join global rally as US rate cut hopes rise | Reuters

Most stock markets in the Gulf tracked global equities higher in early trading on Thursday, after a smaller-than-expected rise in U.S inflation bolstered investors' hopes for interest rate cuts by the Federal Reserve.

Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.4% with most of its constituents posting gains, led by utilities, communication and industry stocks.

ACWA Power (2082.SE), opens new tab was up 2.3%, and MBC Group climbed 4% after the Middle East's largest private media firm reported a quarterly profit.

Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.2%, lifted by gains in consumer staples, utilities and finance sectors with Mashreqbank (MASB.DU), opens new tab rising 2.1%, and Emirates Central Cooling (EMPOWER.DU), opens new tab adding 1.4%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was up 0.1% with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab gaining 2.2% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbing 3.7%.

The Qatari benchmark index (.QSI), opens new tab rose 0.3%, helped by a 6.1% gain in United Development Co (UDCD.QA), opens new tab and a 1.8% rise in Barwa Real Estate Co (BRES.QA), opens new tab.

Milder-than-expected U.S. Consumer Price Index data for April fuelled optimism that inflation was easing, prompting investors to raise bets that the Fed will cut its policy rate in September and December.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

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