Mideast Stocks: Most Gulf markets rebound on easing inflation; Saudi stocks fall
- Date: 01-Feb-2023
- Source: Zawya
- Sector:Financial Markets
- Country:Saudi Arabia
Mideast Stocks: Most Gulf markets rebound on easing inflation; Saudi stocks fall
Most Gulf bourses rose in early trade on Wednesday, tracking crude oil prices and global equities as a slowdown in U.S. labour costs lifted expectations that the Federal Reserve might hint later in the day at ending interest rate hikes.
The U.S. employment cost index rose 1.0%, less than expected, in the fourth quarter. That was the smallest advance since the fourth quarter of 2021 and followed a 1.2% gain in the July-September period.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
Crude oil, a key contributor to Gulf economies, drifted higher on Wednesday, with Brent crude rising $0.34, or 0.40%, to $85.82 a barrel by 0820 GMT.
Banking and petrochemical stocks helped the Qatari Stock index to rise 0.8% and snap two sessions of losses.
Petrochemical maker Industries Qatar gained 1.6%, while Gulf's largest bank, Qatar National Bank, added 0.8%.
Abu Dhabi's benchmark index rose 0.6%, extending gains to a third straight session, with the UAE's largest lender, First Abu Dhabi Bank, rising 2.2%.
The UAE's third-largest lender, Abu Dhabi Commercial Bank , surged 4.6% on its best day since late November, after achieving 23% growth in both annual and