Gulf equities opened higher Thursday, buoyed by a rebound in oil prices and growing speculation that the U.S. Federal Reserve may trim interest rates next week. Investors are watching global cues closely, seeking hints on the Fed’s next move.
Oil markets responded to renewed supply concerns after Ukrainian strikes targeted Russian oil infrastructure, while stalled peace talks dimmed hopes of a swift restoration of Russian output. Still, underlying market weakness capped the upside.
In Riyadh, Saudi Arabia’s benchmark index edged up 0.5%, with Saudi Arabian Mining Company up 1% and oil giant Aramco climbing 0.4%. November data showed the kingdom’s non-oil private sector grew at its fastest pace in 10 months, supported by robust demand and stronger hiring, even as new order growth slowed slightly.
Dubai’s main index rose 0.3%, helped by a 1.9% gain in Emaar Properties and a 1% boost for Emirates NBD. Abu Dhabi’s bourse added 0.4%.
Across the Gulf, Qatar’s index ticked up 0.2%, led by AlRayan Bank’s 1.6% gain.
U.S. data added fuel to rate cut speculation: private payrolls fell by 32,000 in November, the largest drop in over two-and-a-half years. Analysts note that layoffs remain low overall, suggesting the labor market’s fundamentals remain resilient. Traders are now pricing in an 89% chance of a Fed rate cut at the December 9–10 meeting.
