Most Gulf markets gain on US rate cut prospects

Reuters

Most Gulf markets gain on US rate cut prospects

2024 9월 1, 오후 12:55 GMT

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Sept 1 (Reuters) -Most Gulf markets ended higher on Sunday, extending gains from the previous session, after data supported the likelihood of interest rate cuts by the U.S. Federal Reserve.

The U.S. personal consumption expenditures (PCE) price index - the Fed's preferred inflation measure - rose 0.2% in July, according to Commerce Department data released on Friday.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.5% last month, the report showed. The data sets the stage for the Fed to likely begin easing monetary policy from this month.

Money markets are pricing the Fed's first 25 basis point (bp) cut of this cycle at its September meeting, with a 33% chance of a 50 bp reduction.

Monetary policy in the six-member Gulf Cooperation Council (GCC), including Saudi Arabia, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index .TASI gained 0.4%, with aluminium products manufacturer Al Taiseer Group 4143.SE advancing 3.1% and Al Rajhi Bank 1120.SE closing 0.8% higher.

In Qatar, the index .QSI rose 0.3%, with Islamic lender Masraf Al Rayan MARK.QA increasing 1.5%.

Outside the Gulf, Egypt's blue-chip index .EGX30 rose 0.4%, led by a 1.7% gain in Talaat Mostafa Group TMGH.CA.

Egypt's net foreign assets (NFAs) rose by $220 million in July, remaining positive for a third straight month after having been deeply negative for more than two years, central bank data showed.

SAUDI ARABIA	.TASI rose 0.4% to 12,189
QATAR	.QSI was up 0.3% to 10,230
EGYPT	.EGX30 added 0.4% to 30,903
BAHRAIN	.BAX eased 0.1% to 1,956
OMAN	.MSX30 added 0.3% to 4,760
KUWAIT	.BKP dropped 0.2% to 7,806