Most Middle Eastern markets rebound as Fed calms investor nerves

FE Team | Published: August 07, 2024 00:55:07

Most stock markets in the Middle East rebounded on Tuesday, clawing back some of their losses from the previous session when fears of a possible US recession spooked investors, as comments from the Federal Reserve officials soothed their nerves, reports Reuters.
San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is "extremely important" for the central bank to prevent the labour market from tipping into a downturn.
Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71 per cent chance of such an outsized move.
The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025.
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 finished 1.5 per cent higher, led by a 9.9 per cent rise in aluminium products manufacturer Al Taiseer Group.
Elsewhere, oil giant Saudi Aramco rose 1.5 per cent, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.
Dubai's main share index jumped 2.3 per cent, a day after falling more than 4 per cent, with top lender Emirates NBD gaining 3.3 per cent.
In Abu Dhabi, the index gained 1.2 per cent, driven by a 2.1 per cent rise in the country's biggest lender First Abu Dhabi Bank.
The Qatari benchmark, however, eased 0.1 per cent, hit by a 0.8 per cent fall in the Gulf's biggest lender Qatar National Bank.
Outside the Gulf, Egypt's blue-chip index closed 1.3 per cent higher.
Egypt's fuel subsidies saw a 31 per cent annual increase in the 2023/24 financial year, reaching 165 billion pounds ($3.35 billion), while food subsidies reached 133 billion pounds, a 10 per cent year-on-year increase, Finance Minister Ahmed Kouchouk said on Tuesday.