Most stock markets in the Gulf were up in early trading on Thursday amid higher oil prices, while investors also scoured for clues to the health of the U.S. economy and the labour market. Oil prices, a catalyst for the Gulf's financial markets, rose 0.8% as major producers may delay an output increase planned for next month and U.S. inventories fell.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.5%, supported by a 1.3% gain in ADNOC Gas (ADNOCGAS.AD), opens new tab and a 1.1% rise in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Meanwhile, Abu Dhabi state oil giant ADNOC will acquire a 35% stake in a planned Exxon Mobil (XOM.N), opens new tab large-scale hydrogen plant in Texas, the companies said on Wednesday.
Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.3%, aided by gains in most sectors, with Emaar Properties (EMAR.DU), opens new tab adding 1.6% while Dubai Electricity and Water Authority (DEWAA.DU), opens new tab increasing by 1.7%. Elsewhere, growth in the United Arab Emirates' non-oil private sector rebounded in August, a survey showed on Wednesday, supported by a pickup in new orders.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.2% in early trading, with most of its constituents posting losses. ACWA Power (2082.SE), opens new tab fell 1% and Saudi Arabian Mining (1211.SE), opens new tab lost 1.1%. Fawaz Abdulaziz Alhokair Co (4240.SE), opens new tab, however, surged 10% after the retailer said it canceled a capital reduction plan. The Qatari benchmark index (.QSI), opens new tab inched up 0.1% with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, adding 0.4%, and telecom services provider Ooredoo (ORDS.QA), opens new tab gaining 2.2%.
Investors will focus on a reading on the U.S. services industry and jobless claims data on Thursday, along with August report for nonfarm payrolls due on Friday.
Markets are now pricing in a 44% chance of a cut of 50 basis points at the bank's Sept. 17-18 meeting. Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
