MIDEAST STOCKS-Major markets firm on higher oil prices; #Saudi leads gains | Nasdaq

MIDEAST STOCKS-Major markets firm on higher oil prices; Saudi leads gains | Nasdaq

Most Gulf stock markets strengthened on Wednesday, in tandem with global shares, as progress on the U.S. fiscal stimulus front and positive news about COVID-19 vaccines lifted investor sentiment.

U.S. lawmakers continued to negotiate over additional stimulus to help offset the economic impact of the pandemic while pursuing a stopgap government-funding bill.

MSCI's gauge of stocks across the globe .MIWD00000PUS rose 0.3% to a record high 635.65.

Oil prices, a key catalyst for the Gulf markets, gained as upbeat vaccine news spurred investor hopes for a recovery in fuel demand. O/R

Brent crude LCOc1 rose 27 cents, or 0.6%, to $49.11 a barrel by 1218 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 climbed 22 cents, up 0.5%.

Saudi Arabia's benchmark index .ADI closed 0.6% higher, with Al Rajhi Bank 1120.SE gaining 0.5% and petrochemical maker Saudi Basic Industries 2010.SE jumping 1.2%.

Dubai's main share index .DFMGI finished 0.3% higher for a fifth straight session.

Top lender Emirates NBD ENBD.DU gained 1.4% and was the top gainer on the main index, while sharia-compliant lender Dubai Islamic Bank DISB.DU added 0.4%.

The Abu Dhabi index .ADI also ended 0.3% higher, buoyed by a 0.5% increase in the country's largest lender, First Abu Dhabi Bank FAB.AD.

Meanwhile, the United Arab Emirates' ambassador to Washington said there were "seeds of progress" in resolving a long-running Gulf Arab row and a commitment to "tone things down" as the parties work for a solution to end the rift with neighbouring Qatar.

The Qatari index .QSI edged down 0.1%, hurt by a 1.8% drop in shares of Industries Qatar IQCD.QA.