Dubai, Abu Dhabi and Riyadh – Gulf stocks markets recorded a collective decline at the close of trading on Sunday, November 2, 2025,
affected by the continued uncertainty regarding the next move of the US Federal Reserve.
And whether he will make a further interest rate cut before the end of this year.
According to Reuters, the losses were led by the Dubai, Abu Dhabi and Riyadh indices.
While some other Gulf markets recorded mixed performance amid
a decline in investor appetite for high-risk assets,
With global markets continuing to fluctuate.
Investors beware
The agency noted the remarks made by Cleveland Federal Reserve President Beth Hammack on Friday,
This increased investor caution after she confirmed her opposition to
any further interest rate cuts at the present time.
Due to concerns about continued inflationary pressures in the US economy.
The Federal Reserve had kept interest rates unchanged during its last meeting.
But the tough statements from its chairman, Jerome Powell,
prompted markets to lower their expectations.
The opportunity to reduce interest rates next December to around 63% only.
Compared to 92% last week, according to CME Group’s FedWatch tool.
Monetary policies
Financial analysts believe that continued US hesitation in cutting interest rates is
negatively impacting Gulf stocks markets, which are linked to the dollar.
Most Gulf countries follow monetary policies linked to the Federal Reserve.
This means that financing costs will remain high, impacting investment liquidity.
Experts expect regional market movements to remain limited in scope in the coming weeks.
Investors are awaiting any new signals from Washington
regarding the direction of US monetary policy.
