Major stock markets in the Gulf were mixed in early trade on Wednesday, as markets prepared for global interest rates to fall while a decline in crude prices weighed on sentiment.
Federal Reserve Chair Jerome Powell said recent cooling in inflation readings "add somewhat to confidence" that consumer prices are coming under control.
Markets have now fully priced in a quarter-point rate cut from the U.S. central bank in September, with a total easing of 68 basis points (bps) expected by the end of the year. FEDWATCH
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 0.6%, led by a 2.7% rise in ACWA Power Company (2082.SE), opens new tab and a 0.2% increase in Al Rajhi Bank (1120.SE), opens new tab.
Meanwhile, the International Monetary Fund on Tuesday revised downwards Saudi Arabia's economic growth by nearly one percentage point, mainly due to oil production cuts.
Dubai's main share index (.DFMGI), opens new tab added 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab advancing 1%.
The Qatari benchmark (.QSI), opens new tab dropped 0.9%, weighed down by a 2.2% decline in Qatar Islamic Bank (QISB.QA), opens new tab, despite reporting a rise in first-half net profit.
The lender reported a 5.6% year-on-year rise in net profit for the first half of 2024 to 2.07 billion riyals ($567 billion).
In Abu Dhabi, the index (.FTFADGI), opens new tab fell 0.2%.
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