Nov 16 (Reuters) – Most stock markets in the Gulf ended lower on Sunday after hawkish Federal Reserve officials dimmed hopes for a December interest rate cut.
The record-long U.S. government shutdown that concluded on Thursday has generated a significant data void, leaving the Federal Reserve and market participants without key insights ahead of the upcoming policy meeting.
Traders had anticipated new figures revealing economic deceleration, which could provide the Fed with justification for a December rate reduction.
Such hopes dimmed after an increasing number of Fed officials adopted a more cautious stance on further easing, citing stubborn inflation and a resilient labor market despite two rate cuts this year.
Market expectations for a 25 basis-point rate cut next month fell to nearly 46%, from 50% earlier this week, CME Group’s FedWatch tool showed.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
In Qatar, the index (.QSI), opens new tab tumbled 1%, as almost all its constituents were in negative territory, including petrochemical maker Industries Qatar (IQCD.QA), opens new tab, which was down 2.3%.
Outside the Gulf, Egypt’s blue-chip index (.EGX30), opens new tab advanced 2.5% to hit record highs, ending a four-session losing streak, boosted by a 11.9% surge in Telecom Egypt (ETEL.CA), opens new tab following a sharp rise in third-quarter profit.
Reporting by Ateeq Shariff in Bengaluru
Editing by Christina Fincher
