Most stock markets in the Gulf fell on Sunday after stronger-than-expected US jobs data, strengthening expectations that the Federal Reserve (the US central bank) will likely keep interest rates high for a longer period than many traders are betting on.
The Federal Reserve Bank’s decisions have a significant impact on monetary policy in the Gulf region, as most of the region’s currencies are linked to the dollar.
The U.S. economy created 256,000 jobs in December, Labor Department figures showed on Friday, beating analysts’ expectations of 160,000, according to a Reuters poll of economists.
Markets are now pricing in one cut from the Fed no later than June. Before the jobs report, traders were anticipating the Fed would cut interest rates as early as May, with a 50% chance of another cut before the end of the year, according to CME’s FedWatch tool.
In Qatar, the index fell 0.4 percent, affected by a 1.1 percent decline in the share of the largest Gulf bank, Qatar National Bank.
Qatar National Bank is scheduled to announce its 2024 earnings on Monday.
The main index of the Saudi market rose 0.2 percent, supported by a 3.2 percent jump in the shares of SABIC Agricultural Nutrients Company.
Outside the Gulf region, the main index of the Egyptian Stock Exchange fell 0.6%, with Commercial International Bank shares losing 1.6%.
The Muscat Stock Exchange was closed on an official holiday.
The Saudi Arabia index rose 0.2 percent to 12,127 points
Qatar lost 0.4% to 10,405
Egypt’s shares fell 0.6% to 29,277
Bahrain shares fell 0.2 percent to 1,970 points
Kuwait shares fell 0.6% to 7,973 points