Jan 13 (Reuters) – Major stock markets in the Gulf were mixed in early trade on Monday, as unexpectedly strong U.S. jobs data reinforced expectations of prolonged elevated interest rates in the world’s largest economy.
The hawkish jolt from the jobs data also raised the stakes in relation to consumer price figures on Wednesday where any rise in the core measure greater than the forecast of 0.2% would threaten to close the door on easing altogether.
Markets have already scaled back expectations for Federal Reserve rate cuts to just 27 basis points for all of 2025, with the Fed now seen cutting 100 basis points less than many had hoped for this time last year.
At least five Fed officials are on the docket to speak this week and offer their reaction to the jobs surprise, with the influential Federal Reserve Bank of New York President John Williams appearing on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index (.TASI), opens new tab eased 0.1%, hit by a 1.2% fall in Saudi Arabian Mining Company (1211.SE), opens new tab.
In Qatar, the index (.QSI), opens new tab dropped 0.6%, with the Gulf’s biggest lender Qatar National Bank (QNBK.QA), opens new tab losing 0.7% ahead of its earnings announcement.
Dubai’s main share index (.DFMGI), opens new tab gained 0.3%, buoyed by a 14.7% surge in logistics firm Aramex (ARMX.DU), opens new tab.
Abu Dhabi sovereign wealth fund ADQ plans to launch a cash takeover offer for Aramex, bidding for the shares it does not already own in the Dubai-listed courier firm.
The Abu Dhabi index (.FTFADGI), opens new tab added 0.2%.
Oil prices – a catalyst for the Gulf’s financial markets – continued to climb on supply concerns as Russia’s sea borne exports hit their lowest since August 2023, even before the latest round of U.S. sanctions.