Most Gulf stock markets recorded gains during trading on Sunday, clearly supported by widespread expectations.
This suggests that the US Federal Reserve may move to cut interest rates next month.
This comes at a time when falling oil prices have put pressure on gains in a number of markets.
According to Reuters, the improvement in investor sentiment came
after the release of recent US data showing continued growth in the labor market.
This comes as the unemployment rate rises to its highest level in nearly four years,
cooperation
This has strengthened bets that the Fed may resort to easing monetary policy soon.
In Qatar, the general index rose by 0.4%, driven by a rise in Ooredoo shares by about 3.6%.
This follows the company’s announcement of a secondary international
offering of its shares in cooperation with “Abu Dhabi Investment”.
This reinforced expectations of new financial inflows into the market.
As for the Saudi market, it closed with little change, after a 3.3%
rise in Maaden shares supported the general index.
Regional markets
Following the company’s announcement of a new refinery project
in cooperation with the American company MP Materials.
In contrast, Aramco’s stock fell by 0.7%, affected by weak global oil prices.
Regional markets came under additional pressure
after Brent crude fell to its lowest level in nearly a month.
This comes against the backdrop of reports about US pressure to expedite
a settlement to the conflict between Russia and Ukraine.
Gulf markets
This could increase the global oil supply and negatively affect prices.
Gulf markets are highly sensitive to developments related to US Federal Reserve policy.
This is because most Gulf currencies are pegged to the dollar,
which means any change in US interest rates will affect them.
This has a direct impact on the flow of liquidity
and the cost of borrowing within the region.
