Thursday, 5 December 2024

Most Gulf markets gain on US rate cut bets, OPEC+ output delay | Reuters

Most Gulf markets gain on US rate cut bets, OPEC+ output delay | Reuters


Most stock markets in the Gulf ended higher on Thursday, helped by investor confidence in a U.S. interest rate cut and a potential delay in OPEC+'s planned output increase.

Markets currently see a 74% chance of a 25-basis-point rate cut this month, according to the CME Group's FedWatch Tool.

Market's attention is likely to shift to the U.S. payrolls report on Friday, followed by inflation data for November expected next week.

The Fed's decisions impact the Gulf region's monetary policy, as most currencies in the region are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 0.9% and Riyad Bank (1010.SE), opens new tab increasing 3.6%.

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

Oil prices, a catalyst for the Gulf's financial markets, pared some gains after a source told Reuters OPEC+ had agreed to delay a planned oil output hike until April 2025.

The planned delay comes as OPEC+ - the Organization of the Petroleum Exporting Countries plus allies including Russia - tries to support prices as it wrestles with weak demand, notably from China, and rising supply outside the producer group.

The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, led by a 0.6% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.

Dubai's main share index (.DFMGI), opens new tab, however, fell 0.7%, hit by a 5.8% fall in toll operator Salik Company (SALIK.DU), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished flat.

Separately, Egypt plans to list three or four military-owned companies on the stock exchange, with the detailed government IPO schedule to be released next week, Prime Minister Mostafa Madbouly said at a press conference on Wednesday.

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