Gulf stock markets drop as traders await Powell's speech

Stock markets in the Gulf region fell on Wednesday as investors waited to hear from US Federal Reserve chief Jerome Powell as his speech could influence expectations for future interest rate cuts.

Many investors believe that the Fed has finished its aggressive cycle of raising interest rates. This is because Friday's US jobs data showed signs of slowing economic growth.

As a result, some investors are betting that the Fed will start cutting rates next year.

Powell is scheduled to speak on Wednesday and Thursday. His comments will be closely watched by investors around the world.

In the Gulf region, monetary policy is typically guided by Fed decisions. This is because most currencies in the region are pegged to the US dollar.

Saudi Arabia's benchmark stock index fell 0.2% on Wednesday. Arabian Internet and Communications Services and Saudi National Bank both fell by more than 1%.

The Saudi stock market has been trading in a range over the past few days. This is after the market recovered some of its losses from earlier in the year.

Oil prices, which are a key driver of Gulf financial markets, remained under pressure on Wednesday. Prices fell to their lowest levels in more than three months. This is due to concerns about weakening demand for oil in the United States and China.

Dubai's main share index dropped 0.6% on Wednesday. This was driven by a 2% decline in the shares of blue-chip developer Emaar Properties.

In Egypt, the blue-chip EGX30 index advanced 2.5% on Wednesday. This was its highest level in several months. Commercial International Bank jumped 6.9%.

Egyptian inflation is expected to retreat in October from a record high of 38% in September. This is as food price rises moderate. However, analysts warn that Egypt's battle with inflation is far from over.