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April 10 (Reuters) – Most Gulf stock markets ended lower on Monday after U.S. jobs data showed a tight labor market and expectations the Federal Reserve would hike at a meeting next month.
Saudi Arabia’s Benchmark Index (.one) down 0.6%, hit by a 1.6% fall in Al Rajhi Bank (1120.SE) Real Urban Development Co fell 0.8 percent (4322.SE).
Historically low unemployment and rising wages in the U.S. could see the Federal Reserve raise interest rates by 25 basis points next month, as risks of a financial crisis ease and concerns about inflation remain high.
Most Gulf currencies are pegged to the dollar, with Qatar, Saudi Arabia and the United Arab Emirates typically mirroring any U.S. monetary policy changes.
Daniel Takieddine, chief executive of BDSwiss MENA, said there could be some price correction in the Saudi market as traders move to secure gains after peaking this year.
“Strong fundamentals” could lead to a later rebound in the index, he added.
In Qatar, the index (.QSI) Along with Commerzbank, it fell 0.2 percent (Card.QA) down 1.8%.
Qatar National Bank (QNBK.QA)The Gulf region’s largest bank by assets inched up 0.3 percent after reporting an increase in first-quarter earnings.
Abu Dhabi Index (.FTFADGI) increased by 0.4%.
Beyond the Gulf, Egypt’s blue-chip index (.EGX30) El Sewedy Electric Co rose 0.6% (SWDY.CA) An increase of more than 5%.
According to data released by the Egyptian statistical agency CAPMAS on Monday, the annual urban consumer inflation rate in Egypt climbed to 32.7% year-on-year in March, slightly lower than the record high and higher than February’s 31.9%.
Takkieddine said a lower-than-expected rise in inflation had boosted Egyptian stocks, but he said inflation remained high, fueling concerns among international investors, meaning they could “maintain the selling trend”.
Reporting by Ateeq Shariff in Bengaluru; Editing by Barbara Lewis
Our standards: Thomson Reuters Trust Principles.
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