GCC stock markets recovers as global concerns ease, major deals boost sentiment

(MENAFN) On Wednesday, Gulf stock markets exhibited a notable recovery, rebounding from earlier sell-offs driven by concerns over a potential U.S. recession. The Saudi, Dubai, and Abu Dhabi stock exchanges all closed higher, reflecting a broader positive trend observed in financial markets across Europe and Asia. This rebound was partly fueled by gains in Asian markets, particularly in Japan, where the Nikkei index saw a resurgence following the Bank of Japan's unexpected shift towards a more cautious stance on interest rate hikes amidst ongoing market volatility.

Investor sentiment also improved following reassurances from U.S. Federal Reserve policymakers, who downplayed fears that weaker-than-expected employment data from July indicated an impending recession. Markets are now anticipating a 50 basis point rate cut in September, a significant increase in probability from the previous day's forecast, as indicated by the CME Group’s FedWatch tool. In this positive environment, the Saudi index ended 0.4 percent higher, with a notable 2 percent increase in Aramco shares. This boost was further supported by Saudi Aramco's strategic move to acquire a 22.5 percent stake in their joint petrochemical venture, Petro Rabigh, from Sumitomo Chemical for USD702 million, leading to a 10 percent rise in Petro Rabigh shares.

In Dubai, the index advanced 1.5 percent, driven primarily by Emaar Properties, which saw its shares climb 2.9 percent. Meanwhile, the Abu Dhabi index closed up 1.1 percent, contributing to the overall positive trend in the Gulf stock markets. 

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