Most major Gulf markets gain on US rate cut bets | Reuters

Most major Gulf markets gain on US rate cut bets | Reuters

Most major Gulf stock markets rose in early trade on Wednesday on optimism that the US Federal Reserve could begin cutting rates as early as March, although geopolitical tensions in the region limited gains.

The rate cut expectations were boosted by US data released on Friday showed that by some key measures inflation was now at or below the central bank's 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Etihad Atheeb Telecommunication (7040.SE) rising 2.9% and oil company Saudi Aramco (2222.SE) adding 0.5%.

Separately, Saudi Arabia's cabinet on Tuesday announced its approval of contracting regulations for firms that do not have regional headquarters in the Kingdom, Saudi state news agency SPA reported.

The decision comes just days before Saudi Arabia's January 2024 deadline for companies to move their regional headquarters to the kingdom or risk losing hundreds of billions of dollars in lucrative government contracts.

The Qatari index (.QSI) added 0.1%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) putting on 1.1%.

In Abu Dhabi, the index (.FTFADGI) was up 0.1%.

Trading volumes were mostly low because of the absence of many foreign investors for Christmas and New Year holidays.

Dubai's main share index (.DFMGI) eased 0.2%, with top bank Emirates NBD (ENBD.DU) down 0.6%.