Most Gulf markets fall after US jobs data; #Saudi gains | Reuters

Most Gulf markets fall after US jobs data; Saudi gains | Reuters

Most stock markets in the Gulf ended lower on Sunday after strong U.S. jobs data lowered expectations for how much the Federal Reserve might cut interest rates this year, although the Saudi index bucked the trend to finish higher.

Data on Friday showed U.S. employers added far more jobs in January than expected, reducing the chances of near-term Federal Reserve rate cuts.

Traders are now pricing in an 18% chance of a rate cut in March, down from 38% on Thursday, and a 67% probability for May, down from 94%, according to the CME Group's FedWatch Tool.

Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.

The Qatari benchmark (.QSI) eased 0.1%, hit by a 1.7% drop in Qatar Navigation (QNNC.QA) and a 1.3% decrease in Qatar Fuel Co (QFLS.QA).

Saudi Arabia's benchmark index (.TASI), however, gained 0.4%, with Al Rajhi Bank (1120.SE) rising 1.2% and media giant MBC Group (4072.SE) advancing 9.8%.

On the other hand, oil giant Saudi Aramco (2222.SE) lost 0.2%.

Oil prices - a catalyst for the Gulf's financial markets - fell by about 2% after the U.S. jobs data dented hopes for near-term rate cuts, which could dampen crude demand if restrictive monetary policy curbs the economy.

Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 3%, as most of its constituents were in negative territory including Commercial International Bank (COMI.CA), which was down 4.5%.