Thursday 6 June 2024

Gulf markets join global rally on rising Fed rate cut hopes | Reuters

Gulf markets join global rally on rising Fed rate cut hopes | Reuters

Most stock markets in the Gulf tracked global peers higher in early trading on Thursday as hopes of a September interest rate cut by the Federal Reserve firmed after softer U.S. jobs data.

The May private payrolls report on Wednesday was the latest data to suggest an easing in labour market tightness that could propel the Fed to begin cutting rates this year.

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

Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.7%, with most of its constituents posting gains. Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, climbed 1.3% and Saudi Aramco (2222.SE), opens new tab added 0.9%.

The oil major Aramco held talks with U.S. firms Tellurian and NextDecade on two separate liquefied natural gas (LNG) projects, Reuters reported on Wednesday.

Among other gainers, Miahona Holding (2084.SE), opens new tab, the water and wastewater infrastructure firm, jumped 29.91% on its market debut to 14.94 riyals compared to its IPO price of 11.50.

Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.2%, supported by gains in most sectors, with tolls operator Salik Company (SALIK.DU), opens new tab rising 0.9% and National Central Cooling (TABR.DU), opens new tab adding 1.6%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.1%, with the emirate's largest developer Aldar Properties (ALDAR.AD), opens new tab rising 1.1% and Multiply Group (MULTIPLY.AD), opens new tab gaining 1.6%.

The Qatari benchmark index (.QSI), opens new tab rose 0.1%, helped by a 0.3% rise in Qatar Islamic Bank (QISB.QA), opens new tab and a 0.8% gain in Qatar Navigation (QNNC.QA), opens new tab.

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