Tuesday 20 August 2024

Most Gulf markets in black on US rate-cut hopes | Reuters

Most Gulf markets in black on US rate-cut hopes | Reuters


Most stock markets in the Gulf ended higher on Tuesday, in line with global shares, driven by expectations the U.S. Federal Reserve could offer further hints of imminent rate cuts and easing recession worries.

The U.S. Federal Reserve will cut interest rates by 25 basis points at each of the remaining three meetings of 2024, one more reduction than predicted last month, according to a slim majority of economists polled by Reuters who said a recession is unlikely.

Fed policymakers have in recent days signalled a potential rate easing in September.
Monetary policy in the six-member Gulf Cooperation Council 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 rose 0.7%, with Al Rajhi Bank (1120.SE), opens new tab gaining 2.7% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab advancing 2%.

However, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.2%.

The kingdom's crude oil exports fell to 6.047 million barrels per day (bpd) in June from 6.118 million bpd in May, data from the Joint Organizations Data Initiative showed.

Dubai's main share index (.DFMGI), opens new tab gained 0.4%, led by a 0.8% rise in top lender Emirates NBD (ENBD.DU), opens new tab and a 0.5% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.

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

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2%, with Commercial International Bank Egypt (COMI.CA), opens new tab closing 2.8%.

Egypt's foreign debt fell $7.4 billion in the first three months of 2024, according to central bank data released on Tuesday.

The country's finances were boosted in late February when it sold the development rights to prime Mediterranean land at Ras El-Hekma to the United Arab Emirates for $35 billion.

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