Most Gulf bourses in red ahead of US inflation data

Most stock markets in the Gulf ended lower on Wednesday as investors awaited key inflation data from the world’s biggest economy for cues on the likely scale of a Federal Reserve rate cut next month.

The Personal Consumption Expenditure report, the central bank’s preferred inflation gauge, is due at 10 a.m. ET.

Minutes from the Fed’s November meeting, released on Tuesday, showed policymakers were uncertain about the outlook for interest-rate cuts and how much the current rates were restricting the economy.

Traders are now betting on a 62.8% probability the central bank will lower borrowing costs by 25 basis points in December, according to CME Group’s FedWatch Tool.

The Fed’s decisions have a significant impact on monetary policy in the Gulf as most of the region’s currencies are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index dropped 1.2%, dragged down by a 2.8% fall in aluminium products manufacturer Al Taiseer Group and a 1.9% decrease in Al Rajhi Bank.

Gulf bourses end mixed as oil prices slip

However, Tamkeen Human Resources surged 30% to 65 riyals a piece in market debut.

Separately, the kingdom on Tuesday approved its state budget for 2025 forecasting a fiscal deficit of 101 billion riyals ($26.90 billion), as its finance minister said Saudi Arabia will continue to spend on gigaprojects designed to wean the economy off oil.

Dubai’s main share index lost 0.5%, with top lender Emirates NBD sliding 3.4% and toll operator Salik down 1.8%.

In Abu Dhabi, the index eased 0.1%.

Oil prices – a catalyst for the Gulf’s financial markets – were steady as investors monitored the ceasefire between Israel and Lebanese armed group Hezbollah.

Outside the Gulf, Egypt’s blue-chip index retreated 1.5%, hit by a 1.8% fall in top lender Commercial International Bank.

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 SAUDI ARABIA     fell 1.2% to 11,591

 ABU DHABI        lost 0.1% to 9,285

 DUBAI            dropped 0.5% to 4,805

 QATAR            down 0.5% to 10,361

 EGYPT            lost 1.5% to 29,846

 BAHRAIN          added 0.5% to 2,032

 OMAN             lost 0.5% to 4,530

 KUWAIT           declined 0.5% to 7,751

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