Khaberni - Most Gulf stock exchanges concluded Sunday’s dealings lower, pressured by uncertainties over whether the Federal Reserve (US central bank) will implement another interest rate cut before the year's end.
Beth Hammack, president of the Federal Reserve Bank in Cleveland, said Friday that she opposed last week's decision to cut interest rates because inflation is still high.
The Federal Reserve cut interest rates Wednesday; however, statements by its chair Jerome Powell indicate that another reduction this year is not confirmed.
According to the CME FedWatch Tool, the markets now expect a 63% chance of a 25 basis point rate cut at the December meeting, down from nearly 92% a week ago.
US monetary policy decisions significantly affect the Gulf markets, where most currencies are pegged to the dollar.
The main index in Saudi Arabia fell 1%, affected by a 2.5% loss in Al Rajhi Bank's shares, and a 1% decline in shares of Saudi Aramco, the oil giant.
In Qatar, the index fell 0.2% due to a 0.5% drop in shares of Industries Qatar for Petrochemicals, and a 0.3% decrease in shares of Qatar Islamic Bank.
Shares of Mesaieed Petrochemical Holding lost 1.8% after a decline in net profits during the first nine months.
Meanwhile, the Bahrain stock exchange index rose by 0.5%, the Oman index gained 0.4%, and the Kuwait index fell 0.1%.
Outside the Gulf region, Egypt’s leading stock index dropped 0.5%; with shares of the Commercial International Bank declining by 1.4%.
