Strong US jobs data raises rate concerns for Gulf investors

European stock markets faced renewed pressure following a sharp sell-off on Wall Street, driven by stronger-than-expected US employment figures. US employers added 165,000 jobs in October, significantly exceeding the 65,000 expected, while the unemployment rate held at 4.1 percent and average hourly earnings rose by 0.4 percent.

The resilient labour market suggests the Federal Reserve may maintain a restrictive monetary policy to address inflation. This outlook raises borrowing costs for companies and consumers and puts pressure on technology shares, whose valuations depend on future earnings expectations amid doubts over artificial intelligence profitability.

Gulf investors are closely watching these developments as most regional currencies are pegged to the US dollar. A more aggressive US interest rate path could tighten financing conditions across the Gulf, affecting bank lending and the property sector, while a stronger dollar may also pressure oil prices and regional stock markets.

Read the full story at khaleejtimes.com.