A general view shows the Dubai financial market after Joe Biden won the U.S. presidency, in Dubai, United Arab Emirates, November 8, 2020. REUTERS/Christopher Pike/File Photo Acquire Rights
Nov 15 (Reuters) – Most major stock markets in the Gulf region rose in early trading on Wednesday, seeing Asian shares rise on expectations of stimulus measures in China and an end to interest rate hikes in the United States.
Data on Tuesday showed that overall U.S. consumer prices remained unchanged in October, defying expectations for a 0.1% rise. The core CPI was also below the forecast of 0.3% at 0.2%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the US Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark index (.TASI) rose 0.8%, with Elm Co (7203.SE) up 2% and Al Rajhi Bank (1120.SE) up 2.2%.
Saudi Aramco (2222.SE) fell 1.2% as the company traded without a dividend.
The kingdom’s annual inflation rate fell to 1.6% in October from 1.7% the previous month, government data showed on Wednesday, with apartment rents again the main driver.
The Qatari benchmark (.QSI) gained 1.3%, with almost all sectors gaining, including petrochemical maker Industries Qatar (IQCD.QA), which rose 2.1%.
In Abu Dhabi, the index (.FTFADGI) gained 0.1%.
Oil prices – often a catalyst for Gulf markets – rose as China’s factory output and retail sales beat expectations, a day after the International Energy Agency (IEA) raised its oil demand growth forecast for this year.
However, Dubai’s main stock index (.DFMGI) fell 0.1%, driven by a 2.6% decline in diversified investment group Dubai Investments (DINV.DU).
Separately, Dubai’s main airport recorded 22.9 million passengers in the third quarter, its highest quarterly traffic since 2019, operator Dubai Airports said on Wednesday, on track to surpass pre-pandemic numbers for the full year.
Reporting by Ateeq Shariff in Bengaluru; Edited by Miral Fahmy
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