Market Analysis

Gulf stock markets displayed mixed performances in early Monday trading, driven by rising expectations of a U.S. interest rate cut next month and weak oil demand.

Federal Reserve members Mary Daly and Austan Goolsbee suggested in Sunday interviews that an easing in September is possible. This dovish outlook is expected to be reinforced by the minutes of the last policy meeting, which are set to be released this week. Additionally, Fed Chair Jerome Powell's upcoming speech at Jackson Hole on Friday is anticipated to acknowledge the potential for a rate cut.

Monetary policies in the Gulf Cooperation Council (GCC) are typically aligned with the Fed's decisions, given that most regional currencies are pegged to the U.S. dollar.

Qatar's benchmark index edged up by 0.1%, supported by a 0.5% rise in petrochemical producer Industries Qatar and a 1.1% increase in telecom company Ooredoo.

In Abu Dhabi, the index climbed 0.3%.

Saudi Arabia's main index dipped by 0.1%, weighed down by a 0.2% decline in oil giant Saudi Aramco (TADAWUL:2222).

Oil prices, a key driver for the Gulf's financial markets, softened due to concerns over weaker demand from China, the world's largest oil importer. Investor sentiment was also influenced by ongoing ceasefire talks in the Middle East, which could potentially reduce supply risks.

Dubai's primary index fell by 0.1%, with leading lender Emirates NBD dropping 0.5%.

Paraphrasing text from "Reuters" all rights reserved by the original author.