Mideast Stocks: Most Gulf Markets Gain on Oil, US Rate Cut Bets

Most stock markets in the Gulf ended higher on Sunday, ‍buoyed by Friday's ‍gains in oil prices and amid ongoing investor ​attention to U.S. data influencing the Fed's monetary policy outlook.

Oil prices - ⁠a catalyst for the Gulf's financial markets - edged up on possible disruptions ⁠from a ‌U.S. blockade of Venezuelan tankers as the market waits for news about a possible Russia-Ukraine peace deal.

Saudi Arabia's ⁠benchmark index gained 0.3%, led by a 0.8% rise in oil behemoth Saudi Aramco and Al Rajhi Bank, which was up 0.2%.

Recent U.S. macroeconomic indicators have bolstered expectations for ⁠interest rate cuts, as ​U.S. consumer prices increased by 2.7% year-on-year in November, below economists' anticipated rise of ‍3.1%. In a separate report earlier this week, the U.S. Labor Department noted ​that the unemployment rate climbed to 4.6% in November, marking the highest level since September 2021.

Traders continued to bet on at least two 25-basis-point interest rate cuts next year from the Fed, according to LSEG data. U.S. policy is closely watched in the Gulf, where most currencies are pegged to the dollar.

In Qatar, the index closed 0.6% higher, with petrochemical maker Industries Qatar rising 0.6%. Outside ⁠the Gulf, Egypt's blue-chip index advanced 1%, ‌ending three sessions of losses, with Commercial International Bank climbing 3.2%.

Saudi rose 0.3% to 10,485 Arabia Qatar added 0.6% to 10,716 Egypt gained 1% to ‌41,348 Bahrain eased ⁠0.1% to 2,067 Oman was up 0.3% to 5,959 Kuwait finished 0.3% higher to 9,563