📈 Gulf Stock Markets Ride US Rate Cut Hopes & Mideast Peace Signals

Gulf stock markets recorded modest gains this week, buoyed by growing optimism over potential U.S. interest rate cuts and renewed hopes for stability in the Middle East following progress toward a Gaza ceasefire.

Saudi Arabia’s main index rose by around 0.3%, led by strong performances from Al Rajhi Bank and the Saudi Arabian Mining Company. In Dubai, the benchmark index advanced by roughly 0.2%, driven by a surge in Salik shares, which climbed nearly 3%. Abu Dhabi also closed higher, supported by gains in energy-related stocks that offset weakness in ADNOC Drilling. Qatar’s market edged up about 0.1%, lifted by Qatar Gas Transport and banking sector strength.

Investor sentiment across the Gulf was largely positive after dovish comments from U.S. Federal Reserve officials increased expectations for a 25-basis-point rate cut later this month. The prospect of lower borrowing costs has improved liquidity outlooks and encouraged fund inflows into regional equities.

Adding to the optimism, signs of de-escalation in the Gaza conflict and U.S.-backed diplomatic efforts have helped ease geopolitical tensions that previously dampened investor confidence. Market analysts noted that reduced regional risk premiums could attract more foreign investment into GCC markets over the coming weeks.

However, traders remain cautious. The ongoing uncertainty around the U.S. government’s budget standoff and fluctuating oil prices continue to weigh on sentiment. While Brent crude prices remain above $80 a barrel, volatility in global energy demand forecasts could still influence market direction in the near term.

Overall, Gulf markets appear to be stabilizing amid improving macroeconomic sentiment, but the next moves will depend on how quickly global monetary policy and regional diplomacy translate into tangible growth signal

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