Most Gulf markets retreat as Fed uncertainty persists

Reuters

Most Gulf markets retreat as Fed uncertainty persists

9 set. 2024, ore 1:19 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>MIDEAST STOCKS-Most Gulf markets retreat as Fed uncertainty persists</title></head><body>

By Ateeq Shariff

Sept 9 (Reuters) -Most stock markets in the Gulf ended lower on Monday as investors exercised caution ahead of key U.S. inflation data later in the week that could provide clarity on the size of the Federal Reserve's likely interest rate cut this month.

Investors analysed last week's mixed U.S. jobs data and comments from Fed officials, which suggested a weak labour market but without sufficient justification for a 50-basis point interest rate cut.

The U.S. inflation report on Wednesday will be a key indicator that could shift market expectations for the outcome of the Fed's Sept. 17-18 meeting.

Investors wondered whether the mixed U.S. August payrolls report would be enough to tip the Fed into cutting rates by an outsized 50 bps when it meets next week. FEDWATCH

Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.

Saudi Arabia's benchmark index .TASI dropped 0.2%, with Al Taiseer Group 4143.SE losing 0.5%, and Riyad Bank 1010.SE retreating 2.1%.

Dubai's main share index .DFMGI decreased 0.3%, hit by a 2.4% decline in blue-chip developer Emaar Properties EMAR.DU.

In Abu Dhabi, the index .FTFADGI declined 1%, weighed down by a 2.2% slide in Emirates Telecommunications Group EAND.AD.

The Qatari benchmark .QSI closed 0.4% lower, with the Gulf's biggest lender Qatar National Bank QNBK.QA falling 0.6%.

Outside the Gulf, Egypt's blue-chip index .EGX30 added 0.3%, helped by a 7.9% jump in Egypt Kuwait Holding EKHO.CA as the firm signed market maker agreement with National Investment Co.

Egypt's inflation is forecast to have declined for a sixth month in August, helped by a favourable base effect, but some analysts say it is likely to have increased month on month after a series of government-led price hikes.

SAUDI ARABIA	.TASI lost 0.2% to 11,963
ABU DHABI	.FTFADGI dropped 1% to 9,355
DUBAI	.DFMGI down 0.3% to 4,359
QATAR	.QSI fell 0.4% to 10,216
EGYPT	.EGX30 rose 0.3% to 30,375
BAHRAIN	.BAX eased 0.6% to 1,938
OMAN	.MSX30 lost 0.6% to 4,745
KUWAIT	.BKP was flat at 7,789