Most major stock markets in the Gulf rose in early trade on Wednesday as investors awaited U.S. economic data and speeches from policymakers that are expected to make the case for rate cuts. Preliminary revisions to U.S. labour data are due later on Wednesday and a large downward revision is expected, which would support cutting interest rates. U.S. and global purchasing managers' index surveys are due on Thursday.
Federal Reserve Chair Jerome Powell's speech on Friday at the Jackson Hole economic symposium will be parsed for any hints on the likely size of a rate cut next month.
Interest rate futures have priced in a 25 basis point U.S. rate cut next month, with a 1/3 chance of a 50 bp cut. Almost 100 bps in cuts are priced in for this year, and another 100 bps next year. FEDWATCH Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark stock index (.TASI), opens new tab gained 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 0.8% and Al Rajhi Bank (1120.SE), opens new tab advancing 2.1%. However, oil giant Saudi Aramco (2222.SE), opens new tab fell 1.6%.
Oil prices - a catalyst for the Gulf's financial markets - slipped on estimates showing swelling U.S. crude inventories and expectations that tensions in the Middle East were easing following a tour of the region by mediators. Dubai's main share index (.DFMGI), opens new tab edged 0.1% higher, helped by a 2.4% rise in Emirates Central Cooling Systems Corp (EMPOWER.DU), opens new tab.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab climbed 0.1%. The Qatari benchmark (.QSI), opens new tab eased 0.5%, dragged down by a 1.7% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
