Electronic boards showing stock information are pictured at the stock market, in Dubai, United Arab Emirates, November 5, 2020. REUTERS/Abdel Hadi Ramahi/File Photo Purchase Licensing Rights, opens new tab
Aug 21 (Reuters) – Most stock markets in the Gulf ended higher on Wednesday as investors awaited U.S. economic data and speeches from policymakers that are expected to make the case for rate cuts.
Preliminary revisions to U.S. labour data are due later in the day and a large downward revision is expected, which would support cutting interest rates. U.S. and global purchasing managers’ index surveys are due on Thursday.
Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
Interest-rate futures have priced in a 25 basis point U.S. rate cut next month, with a one-third chance of a 50 bp reduction. Almost 100 bps in cuts are priced in for this year, and another 100 bps next year. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index
gained 0.7%, with aluminium products manufacturer Al Taiseer Group
advancing 4.9% and Al Rajhi Bank
closing 3% higher.
Dubai’s main share index
finished 0.9% higher, with blue-chip developer Emaar Properties
rising 3.9% and sharia-compliant lender Dubai Islamic Bank
up 2.7%.
The Qatari benchmark
dropped 0.4%, hit by a 1.8% fall in petrochemical maker Industries Qatar
.
Oil prices – a catalyst for the Gulf’s financial markets – steadied, with benchmark Brent holding above $77 a barrel, after steady selloffs driven by expectations of reduced Chinese demand and diminishing concerns of the Middle East conflict disrupting supply.
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Reporting by Ateeq Shariff in Bengaluru; Editing by Shreya Biswas
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