Most stock markets in the Gulf ended higher on Sunday, buoyed by growing expectations of a U.S. Federal Reserve interest rate cut next week.
Investors absorbed the latest U.S. inflation data and adjusted their bets, strengthening expectations for a Federal Reserve rate cut at the December 9-10 policy meeting.
U.S. consumer spending rose only modestly in September, following three months of robust growth, pointing to waning economic momentum late in the third quarter as a sluggish job market and elevated living costs restrained household demand.
Traders are now assigning an 87% probability, based on CME Group's FedWatch Tool, to a 25-basis-point rate cut by the Federal Reserve next week.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 2.6% rise in Riyad Bank (1010.SE), opens new tab.
Oil prices rose nearly 1% on Friday to a two-week high, supported by expectations of a U.S. rate cut next week and geopolitical risks that could curb supplies from Russia and Venezuela.
In Qatar, the index (.QSI), opens new tab, however, eased 0.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, with Beltone Financial Holding (BTFH.CA), opens new tab advancing 6.9%.
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