Sunday 7 July 2024

Most Gulf markets gain on US rate cut bets | Reuters

Most Gulf markets gain on US rate cut bets | Reuters


Most stock markets in the Gulf ended higher on Sunday after highly anticipated jobs data boosted investors expectations of a Federal Reserve interest rate cut.

U.S. employment increased solidly in June, but government and healthcare services hiring made up about three-quarters of the payrolls gain and the unemployment rate hit a 2-1/2-year high of 4.1%, pointing to a slackening labor market that keeps the Federal Reserve on course to start cutting interest rates soon.

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 0.3%, helped by a 1.4% rise in ACWA Power Co (2082.SE), opens new tab and a 0.9% increase in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

Among other gainers, dairy firm Almarai (2280.SE), opens new tab advanced 1.4% after reporting an increase in quarterly net profit.

The Qatari benchmark (.QSI), opens new tab added 0.5%, with Dukhan Bank (DUBK.QA), opens new tab closing 0.5% higher.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.8% higher, with EFG Holding (HRHO.CA), opens new tab advanced 8.1%.

Meanwhile, Hamas is waiting for a response from Israel on its ceasefire proposal, two officials from the militant Islamist group said on Sunday, five days after it accepted a key part of a U.S. plan aimed at ending the nine-month-old war in Gaza.

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