Major Gulf markets gain on US rate cut hopes | Reuters

Major Gulf markets gain on US rate cut hopes | Reuters

Most major stock markets in the Gulf rose in early trade on Thursday following soft U.S. labour market data that buoyed investor expectations of interest rate cuts later this year.

Data on Wednesday showed signs of a weakening U.S. labour market, with unemployment claims increasing to 238,000, suggesting that the Fed could start cutting rates in September.

The chances of a September rate cut rose to 74% from 65% before the data, with markets pricing in 47 basis points of easing this year.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, on course to end four sessions of losses, helped by a 1.6% rise in aluminium maker Al Taiseer Group (4143.SE), opens new tab and a 1.6% increase in ACWA Power Co (2082.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab was up 0.5% amid a weaker global oil market.

Aramco and Abu Dhabi National Oil Company (ADNOC) have been separately considering bids for Australian gas producer Santos (STO.AX), opens new tab, Bloomberg News reported on Thursday, citing people with knowledge of the matter.

Dubai's main share index (.DFMGI), opens new tab added 0.1%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab gaining 1.2%.
Qatar's benchmark (.QSI), opens new tab gained 0.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 0.5%.

Meanwhile, Abu Dhabi's benchmark index (.FTFADGI), opens new tab eased 0.2%, hit by a 1.4% fall in Emirates Telecommunications Group Company (EAND.AD), opens new tab.

Commercial Court Of Rabat directed Emirates Telecommunications' subsidiary Maroc Telecom to pay 6.368 billion Moroccan dirham ($641.7 million) to Wana Corporate for alleged anti-competitive practices.