Sunday 11 August 2024

Most Gulf markets gain on positive data, Fed's rate signals | Reuters

Most Gulf markets gain on positive data, Fed's rate signals | Reuters


Stock markets in the Middle East ended higher on Sunday,
boosted by positive economic data the previous week and signals from Federal Reserve policymakers that they could cut U.S. rates as early as September.

A trio of Fed policymakers indicated on Thursday that they were more confident that inflation is cooling enough to cut rates, and this - along with a bigger-than-expected fall in U.S. jobless claims data - helped to underpin the recovery.

The U.S. Labor Department said initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended Aug. 3, the largest drop in about 11 months. Economists had expected 240,000 claims.

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%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 5.3% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab increasing 2.3%.

In Qatar, the index (.QSI), opens new tab added 0.2%, helped by a 2.3% rise in Qatar Electricity and Water Company (QEWC.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2.7%, with Talaat Mostafa Holding (TMGH.CA), opens new tab finishing 4.5% higher.
Elsewhere, Abu Dhabi Islamic Bank Egypt (ADIB.CA), opens new tab gained 2.5%, following a rise in second-quarter net profit.

Separately, Egypt will bid to host the 2036 and 2040 Summer Olympics, with the country's improving infrastructure and sports facilities key for a successful African bid, the head of the African national Olympic committees association (ANOCA) said on Sunday.

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