Most stock markets in the Gulf were subdued on Sunday following stronger than expected U.S. jobs data, which reinforced expectations that the Federal Reserve will likely keep interest rates elevated for longer than many traders were betting on.
Fed decisions have a significant impact on the Gulf region's monetary policy as most of the region's currencies are pegged to the dollar.
Friday's Labor Department figures showed the U.S. economy created 256,000 jobs in December, beating analyst expectations of 160,000, according to a Reuters poll of economists.
Markets are now pricing in a single Fed cut no sooner than June. Prior to the jobs report, traders were expecting the Fed to cut as early as May, with a 50% probability of another cut before year-end, according to CME's FedWatch tool.
In Qatar, the index (.QSI), opens new tab fell 0.4%, dragged lower by a 1.1% fall in the Gulf's biggest lender Qatar National Bank (QNB) (QNBK.QA), opens new tab. QNB is scheduled to report 2024 earnings on Monday.
Saudi Arabia's benchmark index (.TASI), opens new tab nudged 0.2% higher, helped by a 3.2% jump in SABIC Agri-nutrient Co (2020.SE), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 0.6%, with Commercial International Bank (COMI.CA), opens new tab losing 1.6%.
The Muscat bourse was closed for a public holiday.
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