Gulf Stocks Plunge as Warsh Remarks Hike Rate-Hike Bets

Gulf stock markets closed lower on Sunday after US Federal Reserve Chair Kevin Warsh reiterated the central bank's commitment to bringing inflation back to target, boosting expectations of another interest-rate increase.

Warsh said at the Fed's annual economic symposium in Jackson Hole that policymakers would 'have work to do' if they were not confident that underlying inflation was returning to the 2% target. He also noted that financial conditions did not appear restrictive.

The market-implied odds of a rate increase at the Fed's September meeting rose to 55.7% from 35.4% on Thursday, according to CME Group's FedWatch tool.