Adedokun Waliyu 
Stock markets in the Gulf were mostly subdued on Sunday, weighed down by concerns that the U.S. Federal Reserve will make fewer rate cuts next year, though a cooler-than-expected inflation report kept the losses in check.
Markets were jolted after the Fed forecast only two rate reductions in 2025 and raised its inflation estimate, in a nod to the economy’s continued resilience and still-high price rises.
Following the November inflation data, traders raised their rate cut bets for 2025, now expecting a rate cut first in March and then again by October.
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most currencies there are pegged to the U.S. dollar.
Saudi Arabia’s benchmark index (.TASI), opens new tab was down for a second straight session, falling 0.4%, with most sectors in the red.
Healthcare provider Dr Sulaiman Al Habib Medical Services (4013.SE), opens new tab slipped 4% and Saudi Aramco (2222.SE), opens new tab lost 1.9%.
SABIC Agri-Nutrients Company (2020.SE), opens new tab gained 3% after the fertilizer and chemicals maker declared a cash dividend of 3 riyals per share for the second half of the year and said it has amended the protocol for declaration and distribution of interim dividends.
The Qatari benchmark index (.QSI), opens new tab rose 1% as it resumed trading after a two-day break for a national holiday, lifted by gains in almost all stocks. Qatar Islamic Bank (QISB.QA), opens new tab climbed 1.6%, while Industries Qatar (IQCD.QA), opens new tab gained 0.9%.
Meanwhile, Qatar’s energy minister told the Financial Times the country would stop shipping gas to the European Union if member states strictly enforce a new law cracking down on forced labour and environmental damage.
Outside the Gulf, Egypt’s blue-chip index (.EGX30), opens new tab eased 0.5% with Commercial International Bank shedding 0.5% and E-Finance for Digital falling 2.5%.
