Gulf markets build on gains on anticipated US rate cuts
Shafaq News/ On Sunday, most Gulfstock markets rose, extending gains from the previous session, driven bypositive US economic data that bolstered expectations for Federal Reserveinterest rate cuts next month.
Recent US data revealed moderatinginflation and strong retail spending, shifting the market sentiment fromrecession concerns, triggered by a weak US jobs report in early August, torenewed confidence in continued economic growth.
As central bankers prepare to meetin Jackson Hole, Wyoming, this week, traders anticipate that the Fed will lowerborrowing costs from a 23-year high next month. However, their expectations foran emergency 50-basis-point cut have decreased to 25%, down from 55% a weekago, according to the CME FedWatch tool.
In the six-member Gulf CooperationCouncil (GCC), monetary policy usually follows the Fed's decisions, as most regional currencies are pegged to theUS dollar.
Saudi Arabia's benchmark index .TASIrose 0.6%, with Al Taiseer Group 4143.SEgaining 6.2%. In Qatar, the index.QSI increased by 0.1%, supported by a 0.9% rise in Industries QatarIQCD.QA.
Conversely, Egypt's blue-chip index.EGX30 fell 0.6%, mainly due to a 1.5% drop in Talaat Mostafa Group TMGH.CA.
