Most stock markets in the Gulf ended higher on Thursday a day after a global sell-off as investors remained cautious ahead of U.S. data, although the Saudi index extended losses from the previous session.
Investors are looking for clues to the health of the U.S. economy and the labour market, with markets on edge from Tuesday’s weak manufacturing figures and Wednesday’s mixed labour data.
The main focus for the week will be Friday’s hotly anticipated August nonfarm payrolls report, which is expected to provide clues on where the economy is headed and whether the Fed will cut rates by a quarter or half a percentage point this month.
Markets are now pricing in a 44% chance of a 50 basis point cut at the bank’s Sept. 17-18 meeting, up from 38% a day earlier, the CME FedWatch tool showed.
Traders are now anticipating 110 bps of easing this year from the three remaining Fed meetings.
Gulf shares up in early trade; US job data in focus
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed’s decisions, as most regional currencies are pegged to the U.S. dollar.
Dubai’s main share index edged 0.1% higher, helped by a 1.3% rise in Dubai Electricity and Water Authority.
In Abu Dhabi, the index advanced 1.2%.
Oil – a catalyst for the Gulf’s financial markets – firmed on Thursday from multi-month lows due to a possible delay to output increases by OPEC+ producers and a decline in U.S. inventories, though gains were capped by persistent demand concerns.
Saudi Arabia’s benchmark index dropped 0.2%, with Al Rajhi Bank losing 0.3%.
Separately, the kingdom’s Fourth Milling Company (MC4) said on Thursday it planned an initial public offering on its local stock exchange, adding to a string of listings in the Gulf country.
Outside the Gulf, Egypt’s blue-chip index added 0.1%, supported by a 0.5% rise in top lender Commercial International Bank.
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SAUDI ARABIA lost 0.2% to 12,099
ABU DHABI rose 1.2% to 9,477
DUBAI gained 0.1% to 4,371
QATAR finished flat 10,323
EGYPT up 0.1% to 31,030
BAHRAIN was up 0.1% to 1,947
OMAN lost 0.4% to 4,761
KUWAIT added 0.3% to 7,819
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