Stock markets in the Middle East ended higher on Sunday, boosted by positive economic data the previous week and signals from Federal Reserve policymakers that they could cut US rates as early as September.
A trio of Fed policymakers indicated on Thursday that they were more confident that inflation is cooling enough to cut rates, and this – along with a bigger-than-expected fall in US jobless claims data – helped to underpin the recovery.
The US Labor Department said initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 233,000 for the week ended Aug. 3, the largest drop in about 11 months. Economists had expected 240,000 claims.
Ex-dividend, poor earnings weigh on Dubai; Abu Dhabi slightly higher
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the US dollar.
Saudi Arabia’s benchmark index gained 0.6%, with aluminium products manufacturer Al Taiseer Group rising 5.3% and the country’s biggest lender Saudi National Bank increasing 2.3%.
In Qatar, the index added 0.2%, helped by a 2.3% rise in Qatar Electricity and Water Company.
Outside the Gulf, Egypt’s blue-chip index advanced 2.7%, with Talaat Mostafa Holding finishing 4.5% higher.
Elsewhere, Abu Dhabi Islamic Bank Egypt gained 2.5%, following a rise in second-quarter net profit.
Separately, Egypt will bid to host the 2036 and 2040 Summer Olympics, with the country’s improving infrastructure and sports facilities key for a successful African bid, the head of the African national Olympic committees association (ANOCA) said on Sunday.
SAUDI ARABIA rose 0.9% to 11,772
QATAR was up 0.2% to 10,077
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