Most Gulf markets in black on US rate cut bets

Most stock markets in the Gulf ended higher on Tuesday, aided by rising hopes for a December rate reduction from the Federal Reserve and indications that the U.S. government shutdown is nearing an end.

Saudi Arabia’s benchmark index rose 0.2%, helped by a 1.1% gain in Al Rajhi Bank and a 2.4% increase in Dar Al Arkan Real Estate Development extending gains from the previous session following a steep rise in quarterly earnings.

Shares of Kingdom Holding – the investment firm controlled by billionaire Prince Alwaleed Bin Talal – leapt 2.2% on a 129% increase in third-quarter profit.

On the downside, Saudi Advanced Industries tumbled 6.1% – its biggest decline since August – after reporting a 99% plunge in third-quarter profit.

Overall, the third-quarter earnings season was largely mixed, though robust non-oil economic activity bolstered sentiment, according to Milad Azar, market analyst at XTB MENA.

Most Gulf markets ease on weak oil, lacklustre earnings

Dubai’s main share index advanced 1.1%, with blue-chip developer Emaar Properties jumping 3.7%.

Traders are pricing in a roughly 64% probability that the Fed will cut rates by 25 basis points next month, according to CME Group’s FedWatch tool.

Last week, data revealed that the U.S. economy had lost jobs in October, driven by declines in the retail sector and the government. And on Friday, a survey showed that U.S. consumer sentiment weakened to a 3-1/2-year low in early November due to worries about the economic effects of the shutdown.

Important economic metrics, including the non-farm payrolls report, have been delayed by the shutdown.

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

Abu Dhabi’s index edged 0.1% higher.

The Qatari index added 0.5%, led by a 1.2% rise in Qatar National Bank – the Gulf’s biggest lender by assets.

Outside the Gulf, Egypt’s blue-chip index lost 0.4%, stretching losses from the previous session when it retreated from record highs on profit taking.

The market fundamentals remain solid, backed by healthy momentum and continuous positive macroeconomic and corporate developments, said Azar.

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Saudi Arabia	 rose 0.2% to 11,270

Abu Dhabi	     added 0,1% to 10,034

Dubai	         gained 1.1% to 6,072

Qatar	         was up 0.5% to 11,141

Egypt	         fell 0.4% to 40,461

Bahrain	         dropped 0.1% to 2,076

Oman	         rose 0.5% to 5,691

Kuwait	         increased 0.4% to 9,472

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