Major stock markets in the Gulf were mixed in early trade on Tuesday ahead of a raft of US economic data that could determine how deeply the Federal Reserve will cut interest rates later this month, reports Reuters.
The US ISM manufacturing survey, due later in the day, and particularly jobs data on Friday will be crucial to gauge whether the Fed reduces rates by 25 basis points or 50 at its Sept. 18 meeting.
Economists forecast the ISM survey improving but remaining in contractionary territory at 47.5 in August. On Friday, analysts will look out for a rise of 160,000 in non-farm payrolls (NFP) and a dip in the unemployment rate to 4.2 per cent.
Monetary policy in the six-member Gulf Cooperation Council (GCC), including Saudi Arabia, is usually guided by the Fed's decisions, as most regional currencies are pegged to the US dollar.
Saudi Arabia's benchmark index gained 0.1 per cent, helped by a 0.7 per cent rise in Al Rajhi Bank and a 4.9 per cent increase in Savola Group tab.
The pace of growth in Saudi Arabia's non-oil sector recovered slightly in August from the previous month's more than two-year low, a survey showed on Tuesday, supported by a pickup in new orders and jobs.
Dubai's main share index rose 0.2 per cent, with blue-chip developer Emaar Properties gaining 1.4 per cent.
In Abu Dhabi, the index eased 0.1 per cent.
The Qatari benchmark dropped 0.1 per cent, with Qatar National Bank, the Gulf's biggest lender, losing 0.6 per cent.
Oil prices - a catalyst for the Gulf's financial markets - fell as sluggish economic growth in China, the world's biggest crude importer, increased worries about demand that overshadowed the impact of the halt of production and exports from Libya.
© 2024 - All Rights with The Financial Express
