Most Gulf markets gain ahead of US Fed rate decision | Reuters

Most Gulf markets gain ahead of US Fed rate decision | Reuters

Most major stock markets in the Gulf rose in the early trade on Wednesday, tracking higher oil prices, while the major focus was on the outcome of the U.S. Federal Reserve's June policy meeting.

The Fed is widely expected to skip raising interest rates this month after a softer U.S. inflation report and investors' cautious mood is likely to extend to Europe when markets open.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) rising 0.7% and Dr Sulaiman Al-Habib Medical Services (4013.SE) climbing 0.8%.

In Abu Dhabi, the index (.FTFADGI) added 0.2%.

Oil prices - a key catalyst for the Gulf's financial markets - inched up ahead of Fed's policy decision, key economic data from China and government data on U.S. crude stockpiles.

Brent crude futures climbed more than 3% on Tuesday on hopes of rising fuel demand after China's central bank lowered a short-term lending rate.

The Qatari index (.QSI) advanced 0.8%, as most of the stocks on the index were in positive territory including petrochemical maker Industries Qatar (IQCD.QA), which advanced by 2%.

Dubai's main share index (.DFMGI), however, bucked the trend to trade 0.1% lower, hit by a 0.8% fall in utility firm Dubai Electricity and Water Authority (DEWAA.DU).