Most Gulf stock markets softened on Monday due to weaker oil prices and caution ahead of upcoming US economic data and Federal Reserve commentary scheduled this week.
In Saudi Arabia, the benchmark index slipped 0.6%, with ACWA Power and aluminium producer Al Taiseer Group both declining by 0.5%. Oil prices, a key driver for Gulf markets, remained stable as concerns over supply disruptions eased following a US storm, while China’s latest stimulus measures fell short of expectations for boosting fuel demand.
Qatar’s index dropped 0.3%, led by a 0.9% decline in petrochemical firm Industries Qatar and a 1% fall in Qatar Gas Transport Nakilat. Meanwhile, Abu Dhabi’s index dipped by 0.2%.
The markets are bracing for several important US data releases this week, including consumer and producer price indices, jobless claims, and retail sales figures. Federal Reserve Chair Jerome Powell and other officials are also set to speak. Traders currently see a 65% likelihood of a 25-basis-point rate cut by the Fed in December, according to the CME Fedwatch tool.
Dubai’s market was the exception, with its main share index climbing 0.5%. Gains were led by Emirates NBD, which rose 1.6%, and Emaar Properties, up 1.1%. Additionally, German-owned Talabat, the Middle Eastern arm of Delivery Hero, is set to list 15% of its shares on the Dubai Stock Exchange in mid-December.
Monetary policy in the Gulf Cooperation Council (GCC) countries often mirrors the Fed’s decisions due to the region’s currency pegs to the US dollar.
