Mideast Stocks: Most Gulf markets extend gains as US recession fear fades

SUMITOMO CHEMICAL

07/08/2024 09:33

Aug 7 (Reuters) - Most Gulf stock markets rose in early
Wednesday trade, on course to extend their comeback from an
aggressive sell-off in global stocks earlier in the week
triggered by fears of a possible U.S. recession.
    U.S. Federal Reserve policymakers pushed back on Monday
against the notion that weaker than expected July jobs data
means that the economy is in a recessionary freefall.
    Markets are pricing in a 65% chance of the Fed cutting
interest rates by 50 basis points in September, the CME FedWatch
tool shows, compared with 85% a day ago.
    Monetary policy in the six-member Gulf Cooperation Council
(GCC) is usually guided by the Fed's decisions as most regional
currencies are pegged to the U.S. dollar.
    Saudi Arabia's benchmark index  .TASI  gained 0.8%, with oil
giant Saudi Aramco  2222.SE  advancing 1.7%.
    Aramco will buy from Japan's Sumitomo Chemical  4005.T  a
22.5% stake in their petrochemical joint venture Petro Rabigh
for $702 million, the companies said on Wednesday, outlining a
turnaround strategy for the loss-making venture.
    On Monday, Aramco reported a second-quarter net profit of
109.01 billion riyals ($29.04 billion), beating a
company-provided median estimate from 15 analysts of $27.7
billion.
    Dubai's main share index  .DFMGI  rose 2%, led by a 4.2%
jump in blue-chip developer Emaar Properties  EMAR.DU .
    Meanwhile, Dubai's main airport is on track to handle a
record number of passengers this year after an 8% year-on-year
increase in the first six months, operator Dubai Airports said
on Wednesday.
    In Abu Dhabi, the index  .FTFADGI  added 1.4%.
    The Qatari benchmark  .QSI , however, eased 0.2%, hit by a
0.1% decrease in the Gulf's biggest lender Qatar National Bank
 QNBK.QA .
    ($1 = 3.7541 riyals)

 (Reporting by Ateeq Shariff in Bengaluru; Editing by Mark
Potter)
 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))