Gulf markets build on gains on anticipated US rate cuts

Shafaq News/ On Sunday, most Gulf stock markets rose, extending gains from the previous session, driven by positive US economic data that bolstered expectations for Federal Reserve interest rate cuts next month.

Recent US data revealed moderating inflation and strong retail spending, shifting the market sentiment from recession concerns, triggered by a weak US jobs report in early August, to renewed confidence in continued economic growth.

As central bankers prepare to meet in Jackson Hole, Wyoming, this week, traders anticipate that the Fed will lower borrowing costs from a 23-year high next month. However, their expectations for an emergency 50-basis-point cut have decreased to 25%, down from 55% a week ago, according to the CME FedWatch tool.

In the six-member Gulf Cooperation Council (GCC), monetary policy usually follows the Fed's decisions, as most regional currencies are pegged to the US dollar.

Saudi Arabia's benchmark index .TASI rose 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.