Major stock markets in the Gulf retreated in early trading on Thursday as investors exercised caution ahead of a key inflation report from the United States that could provide further insight into the monetary policy of the Federal Reserve. Markets are awaiting U.S. inflation data for September, scheduled for release later today, to assess whether the Federal Reserve's interest rate hike campaign has had the desired impact on the economy and to glean additional clues on the interest rate trajectory. Monetary policy in the six Gulf Cooperation Council (GCC) countries is typically guided by decisions made by the U.S. central bank since most of their currencies are pegged to the dollar.
The Saudi index dropped by 0.8%, affected by losses across all sectors, with the stock of Lumi Car Rental falling by 1.8% and the National Bank of Saudi Arabia, the country's largest bank, declining by 1.3%. The Dubai index fell by 0.3% in early trading, with Emaar Properties' stock down by 0.5% and the Dubai Electricity and Water Authority's stock dropping by 1.2%. The Abu Dhabi index decreased by 0.1%, with Alpha Dhabi Holding's stock falling by 1% and Aldar Properties' stock down by 1.2%. In contrast, the Qatari index rose by 0.5%, driven by gains across all sectors, supported by a 1.4% increase in Industries Qatar's stock and a 1.4% rise in Doha Bank's stock.
