Gulf Markets Rise as Fed Rate-Cut Bets Gain Momentum

Most equity markets across the Gulf region finished the session higher on Sunday, supported by growing expectations that the Federal Reserve will deliver a rate cut in December. The improving rate outlook helped offset pressure from weaker oil prices.

Regional Market Highlights

Qatar:

The Qatari index outperformed, rising around 0.4%. Investor sentiment was boosted by strong gains in the telecommunications sector following a large share placement that drew considerable market interest.

Saudi Arabia:

The Saudi benchmark traded mostly flat, held back by a decline in energy heavyweights. Shares of the country’s major oil producer slipped, mirroring softness in crude markets. However, mining stocks provided some support, with one of the region’s key metals producers advancing more than 3% on optimism around new rare-earth processing initiatives.

Egypt:

Egypt’s EGX30 index also recorded modest gains of about 0.4%, continuing its gradual upward trend despite a challenging macro backdrop.

What’s Driving the Move

The latest commentary from U.S. policymakers has strengthened expectations that the Fed is leaning toward a December cut. Lower rates in the U.S. are generally supportive for Gulf markets, many of which operate with dollar-pegged currencies and are sensitive to shifts in U.S. monetary conditions.

Headwinds to Monitor

Oil price weakness remains a drag on sentiment, particularly in Saudi Arabia where energy stocks carry significant index weight. Continued volatility in crude could limit follow-through momentum in the coming days.

What Traders Should Watch

• The upcoming Fed decision in mid-December, which remains the key macro catalyst for Gulf assets.

• Crude oil price stabilization, a critical factor for the region’s equities.

• Further corporate developments in the telecom and mining sectors, which have been driving selective outperformance.