Gulf Stocks Climb On US Interest Rate Cut Hopes

Market Overview

Gulf stock markets climbed on Tuesday, buoyed by hopes that the US Federal Reserve may cut interest rates soon. The S&P GCC Composite Index rose 1.5%, while the Tadawul All Share Index in Saudi Arabia gained 1.2%.

Major oil producers such as Saudi Aramco and ADNOC saw their shares rise as oil prices ticked higher.

Economic Factors

The rally was sparked by comments from Fed Chair Jerome Powell, who said the central bank is "closely monitoring" economic data and is ready to act if needed.

Lower interest rates can boost economic growth by making it cheaper for businesses to borrow and invest.

Market Outlook

Analysts believe that the Gulf markets are likely to continue to rise in the short term if the Fed cuts rates.

However, they caution that the markets are still vulnerable to geopolitical risks, such as the ongoing trade war between the US and China.