Major Gulf stock markets ended mixed on Thursday as oil prices extended losses, while growing bets on a U.S. Federal Reserve rate cut lent some support.
Several Fed officials flagged labour-market concerns, reinforcing expectations that cuts are imminent. Fed Governor Christopher Waller said he believes the central bank should lower rates at its meeting this month.
The Fed’s stance carries weight in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
Saudi Arabia's benchmark index (.TASI), opens new tab added 0.3%, posting its first gain in nine sessions, helped by a 1.7% rise in Al Rajhi Bank (1120.SE), opens new tab.
However, the Saudi index continued its downward trend, ending the week with a 0.7% decline.
Looking ahead, lower oil prices pose a risk to market gains, where the upcoming OPEC+ meeting this weekend could also weigh on sentiment, said George Pavel General Manager at Naga.com Middle East.
"Furthermore, the release of the U.S. Non-Farm Payroll data on Friday and its potential impact on the Federal Reserve's September rate-cut decision will be a key factor for sentiment in Saudi Arabia and regional markets."
Dubai's main share index (.DFMGI), opens new tab rose 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.8%.
In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.2%.
According to Pavel, the persistent risk from lower oil prices can weigh on general market sentiment.
Oil prices - a catalyst for the Gulf's financial markets - fell 1.5%, adding to their more than 2% decline the previous session, as investors awaited a weekend meeting of OPEC+ at which producers are expected to consider another increase in output targets.
The Qatari index (.QSI), opens new tab dropped 0.4%, with the Gulf's biggest lender Qatar Islamic Bank (QISB.QA), opens new tab declining 1%.
** Markets in Egypt, Kuwait and Bahrain were closed for a public holiday.
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