Most major stock markets in the Gulf edged higher in early trade on Tuesday on hopes for possible U.S. interest rate cuts, while expectations of increasing fuel demand during the summer travel season also boost sentiment.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's policy because most regional currencies are pegged to the U.S. dollar.
U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Fed closer to start lowering rates later this year.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.1%, helped by a 1.8% rise in Al Taiseer Group (4143.SE), opens new tab and a 0.7% increase in oil giant Saudi Aramco (2222.SE), opens new tab.
Meanwhile, the kingdom's energy minister announced on Monday the discovery of seven oil and gas deposits in the kingdom's Eastern Province and Empty Quarter, Reuters reported, citing the official Saudi news agency SPA.
Crude oil - a catalyst for the Gulf's financial markets - rose, building on a strong rally in the previous session.
Gasoline demand in the U.S., the world's biggest oil consumer, is expected to ramp up as the summer travel season picks up with the Independence Day holiday this week.
Dubai's main share index (.DFMGI), opens new tab added 0.4%, driven by a 2% rise in toll operator Salik Co (SALIK.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.1%.
The Qatari benchmark (.QSI), opens new tab inched 0.1% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 0.3%.
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