GCC stock markets rise on robust US economic data, expectation of interest rate cuts by Federal reserve

(MENAFN) On Sunday, most stock markets in the Gulf region experienced gains, extending the upward trend from the previous session, driven by optimistic U.S. economic data. The positive data, which highlighted slowing inflation and increasing retail sales, alleviated recession concerns that had emerged following a disappointing U.S. jobs report earlier in August. This renewed confidence in the U.S. economy’s growth prospects has bolstered expectations that the Federal Reserve may begin reducing interest rates as early as next month.

Global central bankers are set to convene in Jackson Hole, Wyoming, this week, with traders closely watching for signals regarding potential rate cuts from the Federal Reserve. As most currencies in the Gulf Cooperation Council (GCC) are pegged to the dollar, the region typically aligns its monetary policies with the Fed’s decisions. Consequently, the Saudi stock index saw a rise of 0.6 percent, buoyed by a notable 6.2 percent increase in shares of Al-Taisir Group. Similarly, Qatar's main index edged up by 0.1 percent, supported by a 0.9 percent gain in Industries Qatar shares.

In contrast, Egypt’s blue-chip index experienced a decline of 0.6 percent, influenced by a 1.5 percent drop in shares of Talaat Moustafa Group. Despite the overall positive sentiment in the Gulf markets, the downturn in Egypt reflects the varied impact of economic developments across different regions.  

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