Mideast Stocks: Most Gulf markets end lower on US rate cut uncertainty

Commercial International Bank Egypt CIB

02/11/2025 13:14

By Ateeq Shariff

Nov 2 (Reuters) - Most stock markets in the Gulf ended lower on Sunday pressured by lingering doubts over whether the U.S. Federal Reserve will deliver an additional interest rate cut before the end of the year.

Federal Reserve Bank of Cleveland President Beth Hammack said on Friday she had opposed the central bank's interest rate cut last week, adding that the Fed needs to maintain some restriction to bring down inflation.

The Fed cut interest rates on Wednesday, but hawkish remarks from Chair Jerome Powell mean markets are now pricing a 63% chance for a 25-basis-point cut at the December meeting, down from almost 92% a week ago, according to the CME's FedWatch Tool.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

       Saudi Arabia's benchmark index .TASI declined 1%, dragged down by a 2.5% fall in Al Rajhi Bank  1120.SE and a 1% retreat in oil behemoth Saudi Aramco 2222.SE.

In Qatar, the index .QSI fell 0.2%, hit by a 0.5% fall in petrochemical maker Industries Qatar  IQCD.QA and a 0.3% decrease in Qatar Islamic Bank  QISB.QA.

Among other fallers, Mesaieed Petrochemical Holding  MPHC.QA declined 1.8%, following a slide in nine-month net profit.

Outside the Gulf, Egypt's blue-chip index .EGX30 dropped 0.5%, with Commercial International Bank  COMI.CA losing 1.4%.

Saudi Arabia
.TASI declined 1% to 11,536
Qatar
.QSI fell 0.2% to 10,930
Egypt
.EGX30 lost 0.5% to 38,083
Bahrain
.BAX added 0.5% to 2,074
Oman
.MSX30 gained 0.4% to 5,634
Kuwait
.BKP eased 0.1% to 9,560

(Reporting by Ateeq Shariff in Bengaluru; Editing by Sharon Singleton)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788))