Most Gulf stock markets rose in early Wednesday trade, on course to extend their comeback from an aggressive sell-off in global stocks earlier in the week triggered by fears of a possible U.S. recession.
U.S. Federal Reserve policymakers pushed back on Monday against the notion that weaker than expected July jobs data means that the economy is in a recessionary freefall.
Markets are pricing in a 65% chance of the Fed cutting interest rates by 50 basis points in September, the CME FedWatch tool shows, compared with 85% a day ago.
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 0.8%, with oil giant Saudi Aramco (2222.SE), opens new tab advancing 1.7%.
Aramco will buy from Japan's Sumitomo Chemical (4005.T), opens new tab a 22.5% stake in their petrochemical joint venture Petro Rabigh for $702 million, the companies said on Wednesday, outlining a turnaround strategy for the loss-making venture.
On Monday, Aramco reported a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.
Dubai's main share index (.DFMGI), opens new tab rose 2%, led by a 4.2% jump in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Meanwhile, Dubai's main airport is on track to handle a record number of passengers this year after an 8% year-on-year increase in the first six months, operator Dubai Airports said on Wednesday.
The Qatari benchmark (.QSI), opens new tab, however, eased 0.2%, hit by a 0.1% decrease in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
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