A trader looks near electronic boards showing stock market data at the Bahrain Stock Exchange after Joe Biden won the U.S. presidency, in Manama, Bahrain, November 8, 2020. REUTERS/Hamad I Mohammed/Photo archive Acquire license rights
Oct 22 (Reuters) - Gulf stock markets fell on Sunday amid warnings of possible further interest rate hikes by the U.S. Federal Reserve and concerns of an escalation in the Middle East conflict.
Federal Reserve Chairman Jerome Powell saying On Friday, the strength of the U.S. economy and continued tightness in labor markets could require even tighter borrowing conditions to control inflation.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is typically guided by the Federal Reserve's policy decisions because most regional currencies are pegged to the US dollar.
The Saudi Arabian Benchmark (.ONE) fell for the third consecutive session, ending with a 1.5% drop, with all sectors in the red.
elm company (7203.SE) fell 2.3%, while Al Rajhi Bank (1120.SE)the world's largest Islamic bank by assets, fell 2.1%.
The Qatari index (.QSI) fell for the fifth consecutive session, ending down 0.9%, with Industries Qatar (IQCD.QA) falling 2.2% and Qatar Navigation (QNNC.QA) sliding 3%.
Qatar National Bank, the region's largest lender (QNBK.QA) fell 2.1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 2.3%, with almost all stocks in positive territory, including Eastern Co (EST.CA) and the Talaat Mostafa Group (TMGH.CA) which increased by 6.9% and 8.1% respectively.
Meanwhile, concerns are growing about the risk of the war between Israel and Hamas escalating into a broader conflict in the Middle East. pink On Sunday, the United States sent more military assets to the region as Israel pounded Gaza overnight and also struck targets in Lebanon and Syria.
Reporting by Dr. Manzer Hussain; Editing by David Holmes
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