Gulf Markets React to U.S. Inflation Data

Stock markets in the Gulf region displayed a mix of performances on Thursday, with most markets closing higher while the Dubai index faced a decline for the third consecutive session. The optimism among investors was fueled by the release of milder-than-expected U.S. Consumer Price Index data for April, hinting at a potential easing of inflation. This development led to speculations that the U.S. Federal Reserve might consider reducing its policy rate in the upcoming months, which could have implications for Gulf currencies pegged to the dollar.

In Saudi Arabia, the benchmark stock index witnessed a rebound with a 0.8% increase, driven by the positive performance of companies like ACWA Power and Saudi National Bank. Similarly, the Qatari benchmark index rose by 0.8%, supported by gains in various sectors. Abu Dhabi's benchmark index also experienced a modest 0.2% rise, propelled by gains in Alpha Dhabi and Abu Dhabi Islamic Bank. However, Dubai's benchmark index faced a 0.2% decline, hitting its lowest level in almost four months due to losses in real estate and industry stocks.

Outside the Gulf region, Egypt's blue-chip index surged by 3.3%, driven by gains across sectors such as materials, industry, and healthcare. Notable performers included El Sewedy Electric and E-Finance for Digital, following positive financial results. Moreover, Egypt received a substantial $14 billion payment from the United Arab Emirates for the development of the Ras al-Hikma peninsula, as confirmed by a cabinet statement.

The fluctuating trends in the Gulf region's stock markets reflect the impact of global economic indicators, particularly the anticipation of U.S. interest rate adjustments. Investors are closely monitoring these developments for potential opportunities and risks. Meanwhile, Egypt's market showcased significant growth supported by positive sector performances and foreign investments, indicating a promising outlook for the country's economy.