Gulf markets muted as investors brace for US data; Egypt extends gain

Most Gulf stock markets were subdued on Monday as investors turned cautious ahead of key U.S. economic data that could shape the interest rate outlook.

The upcoming employment, inflation and other indicators are especially critical after a 43-day U.S. federal government shutdown delayed key reports, leaving investors and the Federal Reserve with little certainty.

The Fed last week cut rates by 25 basis points for a third straight meeting but signalled further reductions are unlikely in the near term as it waits for clearer data.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari benchmark index fell 0.9%, with all constituents in negative territory. Qatar Islamic Bank slipped 2.4% and Qatar Electricity and Water Co dropped 1.8%.

Dubai’s benchmark stock index edged 0.1% lower, weighed down by a 9.7% slide in Gulf Navigation and a 0.7% decline in Emirates NBD, the emirate’s largest lender. Ajman Bank gained 3.1% after the Ajman government said on Friday it had raised its stake in the bank to 33.1% from 31.1%.

Saudi Arabia’s benchmark stock index ended flat, with Saudi Basic Industries Corp down 1.3% and Riyad Bank off 1.1%. Fawaz Abdulaziz Al Hokair & Co rose 1.6% after the retailer signed a 1.58 billion riyal ($421 million) facilities agreement on Sunday.

The Abu Dhabi benchmark index was little changed as gains in technology, real estate, healthcare and energy offset losses elsewhere.

Abu Dhabi Commercial Bank added 1.1%, while Invictus Investment jumped 10.2%, its biggest intraday gain in more than three years, after the diversified trading company said on Friday that International Holding Company  had increased its stake to about 40% in a block trade valued at around 420 million dirhams ($114.36 million).

Abu Dhabi Ship Building declined 1.3% after the shipbuilder’s board approved a $1.89 billion deal with EDGE Acquisitions Company to build eight vessels for the Kuwaiti government.

Outside the Gulf, Egypt’s blue-chip index rose 0.6% for a second straight session, supported by a 1.4% gain in Commercial International Bank and a 2.8% rise in Palm Hills Developments which on Sunday signed an agreement with Marriott International to develop a new luxury hotel in Cairo.