Most stock markets in the Gulf ended higher on Thursday, after US Federal Reserve minutes signalled interest-rate cuts were set to begin in a few weeks' time, reports Reuters.
The Fed appears to be very much on track for an interest-rate cut in September after a "vast majority" of officials said such an action was likely, according to the minutes of the US central bank's July 30-31 meeting.
US PMI and initial jobless claims figures are due later in the day.
Interest rate futures markets have fully priced in a 25-basis-point cut from the Fed next month, with a 1/3 chance of a 50-bp cut. They project 222 bps of US easing by the end of 2025, against 163 bps for Europe.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the US dollar.
Saudi Arabia's benchmark index edged 0.1 per cent higher, helped by a 1.7 per cent increase in Middle East Pharmaceutical Industries.
Dubai's main share index finished 0.3 per cent higher, with top lender Emirates NBD advancing 2.1 per cent.
In Abu Dhabi, the index was up 0.3 per cent. The Qatari benchmark was flat.
Oil prices - a catalyst for the Gulf's financial markets - steadied after four days of declines on investor concern over the global demand outlook, though a drop in US fuel inventories provided a floor.
Outside the Gulf, Egypt's blue-chip index advanced 0.8 per cent, with Commercial International Bank rising 2.1 per cent.
Most Gulf markets gain on hopes of early US Fed rate cut
FE Team | Published: August 23, 2024 00:01:51
Most Gulf markets gain on hopes of early US Fed rate cut
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