A trader looks at nearby electronic boards displaying stock market data at the Bahrain Stock Exchange after Joe Biden won the U.S. presidency in Manama, Bahrain, November 8, 2020. REUTERS/Hamad i Mohammed/File Photo acquire license rights
Nov 6 (Reuters) – Most major stock markets in the Gulf region rose in early trading on Monday after weaker-than-expected U.S. jobs data bolstered expectations that the Federal Reserve will not raise interest rates further.
Most Gulf Cooperation Council countries, including the United Arab Emirates, peg their currencies to the US dollar and are closely following the Fed’s policy moves.
U.S. job growth slowed in October partly as auto union strikes depressed manufacturing wages. The increase in annual wages was the lowest in almost two and a half years.
Saudi Arabia’s benchmark index (.TASI) gained 0.1%, helped by a 1.3% rise in Lumi Rental Co (4262.SE).
However, oil giant Saudi Aramco (2222.SE) fell 0.2% ahead of its earnings announcement on Tuesday.
Saudi Arabia confirmed it would continue its additional voluntary cut of 1 million barrels per day (bpd) in December to keep production at about 9 million bpd, an Energy Ministry source said in a statement. The Saudi decision was in line with analysts’ expectations.
Dubai’s main stock index (.DFMGI) rose 0.5%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU) rose 1.2%.
In Abu Dhabi, the index (.FTFADGI) gained 0.3%.
Oil prices – a key catalyst for Gulf financial markets – rose slightly as top exporters Saudi Arabia and Russia said they would stick with additional voluntary cuts in oil production through the end of the year to keep supplies tight while the Investors waited for tougher US sanctions for Iranian oil.
The Qatari benchmark (.QSI) rose 0.6%, driven by a 6.1% rise in Islamic lender Masraf Al Rayan (MARK.QA).
Reporting by Ateeq Shariff in Bengaluru; Edited by Bernadette Baum
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