Most stock markets in the Gulf ended higher on Monday, in step with global equities, after cooler-than-expected U.S. inflation data revived hopes of further policy easing by the Federal Reserve.
Following November inflation data in the world's largest economy, traders raised their rate cut bets for 2025, now expecting a cut first in March and then again by October.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI), opens new tab bounced back after two consecutive sessions of losses and gained 0.8%, with most sectors in the green.
Insurer Medgulf (8030.SE), opens new tab climbed 4.2% after it signed a contract to provide health insurance services to the state-owned Saudi Electricity (5110.SE), opens new tab.
Knowledge Economic City Company (4310.SE), opens new tab gained 1.4% after the developer said it has signed an agreement with Sidra Capital and Raseel Properties to establish a 1.04-billion riyals ($276.75 million) investment fund.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.5%. Food retailer and real estate investor MAIR Group (MAIR.AD), opens new tab surged 12.4%, while Abu Dhabi National Energy Company (TAQA.AD), opens new tab gained 1.9%.
Energy firm TAQA said on Friday that its 43%-owned Masdar had completed the acquisition of Saeta Yield for an implied enterprise value of EUR 1.2 billion ($1.25 billion).
Dubai's benchmark stock index (.DFMGI), opens new tab was little changed, with Emaar Properties (EMAR.DU), opens new tab slipping 1.6% and Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, rising 3.7%.
The Qatari benchmark index (.QSI), opens new tab fell 0.2%, with most sectors in negative territory. Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, fell 0.7% and telecom service provider Ooredoo (ORDS.QA), opens new tab shed 0.5%.
Meanwhile, Qatar's energy minister told the Financial Times on Sunday that the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a second day, dropping 0.8%, with almost all stocks posting losses. Commercial International Bank (COMI.CA), opens new tab slipped 1.1% and EFG Holding (HRHO.CA), opens new tab slid 2.6%.
"(The) market trended lower as (a)correction phase continued, with prices seeing strong volatility," said Hani Abuagla, senior market analyst at XTB MENA.
"The market also awaits signs of improved economic stability to boost investor sentiment."
