Gulf stocks fall on tight monetary policy outlook – Reuters

Gulf stocks fall on tight monetary policy outlook – Reuters

Aug 28 (Reuters) - Major Gulf stock markets ended lower on Sunday as investors in the region reacted to comments by Federal Reserve Chair Jerome Powell signalling the U.S. economy would need tight monetary policy "for some time" to bring inflation under control.

Following in their global peers' footsteps, Gulf markets came under downward pressure as investors worried about a grimmer growth outlook amid a more hawkish policy stand from U.S. Fed chief.

"His comments were more bullish than anticipated by investors and signalled that the central bank is not considering suspending the tightening cycle prematurely even with the decline in inflation in the U.S.," said Farah Mourad, Senior Market Analyst of XTB MENA.