Most Gulf markets extend gains on US rate-cut hopes | Reuters

Most Gulf markets extend gains on US rate-cut hopes | Reuters

Most stock markets in the Gulf ended higher on Sunday, extending gains from the previous session, helped by encouraging U.S. economic data that reinforced bets that the Federal Reserve would start cutting interest rates next month.

A batch of U.S. data this week showed inflation was moderating and retail spending was robust.

The data has helped the market narrative move away from recession concerns, sparked by a weak U.S. jobs report in early August, to confidence the economy can keep growing.

With central bankers from around the globe set to gather in Jackson Hole, Wyoming, this week, traders expect the Fed to lower borrowing costs from a 23-year high next month but have reduced their bets on an emergency 50-basis-point cut to 25%, down from 55% a week ago, the CME FedWatch tool showed.

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 advancing 6.2%.

In Qatar, the index (.QSI), opens new tab added 0.1%, helped by a 0.9% rise in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.6%, dragged down by a 1.5% fall in Talaat Mostafa Group (TMGH.CA), opens new tab.