Inflation data from the United States lifts the majority of key Gulf markets.

By Maggie On Nov 14, 2023

Inflation data from the United States lifts the majority of key Gulf markets. In early trading, the majority of main Gulf stock markets rose due to rising oil prices and anticipation of a key U.S. inflation report that could significantly impact the Federal Reserve’s policy outlook.

Fed decisions typically dictate monetary policy in the Gulf Cooperation Council (GCC), which consists of six members due to the linkage of most regional currencies to the U.S. dollar.

Following remarks by Fed Chair Jerome Powell and other policymakers that they remain uncertain whether current interest rates are sufficient to contain inflation, investors are awaiting the report later on Tuesday.

According to economists surveyed by Reuters, headline consumer price inflation in the United States is anticipated to have decelerated to 3.3% in October from 3.7% in September. However, the core inflation rate, which excludes volatile components, remains unchanged.

The benchmark index of Saudi Arabia (.TASI) increased by 0.8%, led by gains of 2.4% and 0.3% for oil behemoth Saudi Aramco (2222.SE) and auto rental firm Lumi (4262.SE).

Infrequently a catalyst for Gulf financial markets, oil prices increased marginally after an OPEC report affirming the robustness of market fundamentals. As it maintained its relatively high 2024 forecast and marginally increased its 2023 forecast for global oil demand growth, OPEC attributed a price decline to speculators on Monday.

The Abu Dhabi index (.FTFADGI) exhibited a 0.1% increase.

The Qatari benchmark (.QSI) gained 0.2%, with petrochemical manufacturer Industries Qatar (IQCD.QA) and Masraf Al Rayan (MARK.QA) each increasing by 3.1% and 0.9%, respectively.

In contrast, Dubai’s primary share index (.DFMGI) declined 0.2%, which was weighed down by a 1.4% decline in Emaar Properties (EMAR.DU), a blue-chip developer.