Wednesday 17 July 2024

Most Gulf markets end higher on rising US rate-cut optimism | Reuters

Most Gulf markets end higher on rising US rate-cut optimism | Reuters


Most stock markets in the Gulf ended higher on Wednesday, as comments from U.S. Federal Reserve officials boosted expectations of a September interest rate cut.

Fed Chair Jerome Powell said recent cooling in inflation data "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 5.6% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 2.5% increase in ACWA Power Co (2082.SE), opens new tab.

The kingdom's crude oil exports rose in May, after slipping in April from a nine-month high hit in March, data from the Joint Organizations Data Initiative showed on Wednesday.

Dubai's main share index (.DFMGI), opens new tab closed 0.5% higher, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab advancing 1.4% and top lender Emirates NBD (ENBD.DU), opens new tab up 1.2%.

In Abu Dhabi, the index (.FTFADGI), opens new tab edged 0.1% higher.

The Qatari benchmark (.QSI), opens new tab dropped 0.4%, weighed down by a 1.7% decline in Qatar Islamic Bank (QISB.QA), opens new tab despite reporting a rise in first-half net profit.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.8%, as most of its constituents were in positive territory, including tobacco monopoly Easter Company (EAST.CA), opens new tab which was up 6.2%.

Egypt's total budget deficit fell to 505 billion Egyptian pounds ($10.5 billion) in fiscal 2023/24 that ended on June 30, compared with 610 billion pounds a year earlier, finance minister Ahmed Kouchouk said in a statement on Wednesday.

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