Most stock markets in the Gulf ended higher on Thursday as traders awaited key U.S. data that was expected to show inflation easing and pave the way for the Federal Reserve to start its long-awaited interest-rate cut cycle in September.
Fed Chair Jerome Powell told lawmakers on Capitol Hill on Wednesday “more good data” would build the case for the U.S. central bank to cut interest rates. Futures pricing implies about a 75% chance of a cut in September.
Economists forecast annual U.S. CPI slowed to 3.1% in June from 3.3% in May.
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 U.S. dollar.
Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 5.2% jump in Al Taiseer Group.
Gulf markets subdued on oil, ahead of earnings
Elsewhere, oil giant Saudi Aramco gained 0.2%.
Aramco expects to raise $6 billion from its three-part bond sale on Wednesday, the oil giant’s first foray into the debt markets in three years, a document showed.
Dubai’s main share index gained 0.3%, with budget airliner Air Arabia rising 2.1% and top lender Emirates NBD increasing 0.3%.
In Abu Dhabi, the index was up 0.1%.
Crude prices – a catalyst for the Gulf’s financial markets – were stable with the Brent benchmark holding above $85 a barrel, as investors balanced a bleaker demand growth view from the International Energy Agency with a indications of growing U.S. consumption.
The Qatari benchmark closed 0.2% higher, with Qatar Navigation advancing 1.3%.
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