GCC stock markets gain amid U.S. interest rate cuts
(MENAFN) On Sunday, most stock markets in the Gulf region experienced gains, continuing the positive momentum from previous sessions following recent data suggesting a potential interest rate cut by the U.S. Federal Reserve. According to data released by the U.S. Commerce Department on Friday, the personal consumption expenditures (PCE) index, which is the Federal Reserve's preferred inflation measure, increased by 0.2 percent in July. Additionally, consumer spending, which represents over two-thirds of U.S. economic activity, rose by 0.5 percent for the same period. These figures indicate a likely interest rate reduction by the Federal Reserve, potentially initiating a cycle of monetary easing beginning this month.
In the Gulf Cooperation Council (GCC) region, where many currencies are pegged to the U.S. dollar, market movements are often influenced by Federal Reserve policy decisions. The Saudi stock index increased by 0.4 percent, with notable gains in shares of Al-Taiseer Group, which rose by 3.1 percent, and Al-Rajhi Bank, which saw a 0.8 percent increase. Similarly, the Qatari index grew by 0.3 percent, bolstered by a 1.5 percent rise in Masraf Al Rayan shares.
Beyond the Gulf, Egypt's blue-chip index also saw a 0.4 percent rise, supported by a 1.7 percent increase in Talaat Moustafa Group shares. Notably, Egypt's net foreign assets turned positive for the third consecutive month in July, a significant recovery after being deeply negative for over two years, with an increase of USD220 million according to central bank data.
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