By Md Manzer Hussain
(Reuters) – Stock markets in the Gulf ended higher on Sunday, led by the Qatar index, after slowing U.S. jobs growth in April raised hopes of early interest rate cuts by the U.S. Federal Reserve.
The Labor Department’s employment report showed the U.S. economy added fewer jobs than expected, while the unemployment rate ticked higher and wage growth unexpectedly cooled.
The report prompted investors to raise bets the Fed would implement its first rate reduction in September.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index bounced back after three straight sessions of losses and ended 0.8% higher with all sectors in the positive territory.
Qatar National Bank, the region’s largest lender, rose 1.2% and Industries Qatar gained 0.7%.
Saudi Arabia’s benchmark index was up for a second straight session and rose 0.2%, lifted by gains in finance, industry, consumer discretionary and energy sectors.
Al Rajhi Bank, the world’s largest Islamic lender, and Saudi National Bank, the kingdom’s biggest lender climbed 1.5% each.
Among other gainers, Thob Al Aseel advanced 3.5%, after the garments supplier reported a 44% rise in quarterly net profit.
Meanwhile, Saudi Arabia’s non-oil business activity grew at a steady rate in April despite a slowdown in new order growth, a survey showed on Sunday, with domestic demand driving output.
SAUDI ARABIA up 0.2% to 12,373
KUWAIT added 0.2% to 7,667
QATAR rose 0.8% to 9,690
EGYPT Closed
BAHRAIN added 0.1% to 2,031
OMAN gained 0.7% to 4,805
(Reporting by Md Manzer Hussain; Editing by Angus MacSwan)
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