Monday 2 September 2024

Major Gulf markets gain on US rate cut prospects | Reuters

Major Gulf markets gain on US rate cut prospectus | Reuters

Major stock markets in the Gulf rose in early trade on Monday as investor sentiment remained upbeat on hopes of a September rate cut in the United States.

The Federal Reserve is expected to kick off a rate-cutting cycle at its monetary policy meeting on Sept. 17-18.

Traders currently see a 67% chance of a 25 basis-point (bp) reduction by the U.S central bank this month and a 33% chance of a 50-bp cut, according to the CME FedWatch tool.

Investors await the U.S. ISM manufacturing and services prints, along with the JOLTS job openings, ADP private payrolls and the weekly jobless claims data this week.

The highly-anticipated non-farm payrolls report is due on Friday.

Monetary policy in the six-member Gulf Cooperation Council (GCC), including Saudi Arabia, 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 edged 0.1% higher, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 0.3%, while oil giant Saudi Aramco (2222.SE), opens new tab was up 0.5%.

The Organization of the Petroleum Exporting Countries (OPEC) and their allies, a group known as OPEC+, is set to proceed with a planned oil output hike from October, six sources from the producer group told Reuters.

Dubai's main share index (.DFMGI), opens new tab gained 0.6%, led by a 2.1% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 1.3% rise in Emirates NBD (ENBD.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%.

The Qatari benchmark (.QSI), opens new tab rose 0.6%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 1%.

Separately, state-owned QatarEnergy will boost its production of urea to more than 12.4 million tons annually from 6 million tons currently, its CEO said in a press conference on Sunday, without giving a timeframe.

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