Most stock markets in the Gulf ended higher on Wednesday as comments from Federal Reserve Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off.
Data for May showed the Fed's preferred measure of inflation did not increase at all that month, while the 12-month rate of price increases has ebbed to 2.6%, still above the U.S. central bank's 2% target but on the way down after a scare in the first few months of the year.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with Emirates Central Cooling Systems (EMPOWER.DU), opens new tab rising 2.7% and toll operator Salik (SALIK.DU), opens new tab gaining 1.4%.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.1%, with ADNOC Drilling (ADNOCDRILL.AD), opens new tab gaining 0.5% after the firm was awarded a $733 million contract for three rigs.
The Qatari benchmark (.QSI), opens new tab added 0.5%, led by a 0.6% gain in Qatar National Bank (QNBK.QA), opens new tab and a 0.9% increase in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - rose as U.S. industry data boosted hopes of solid fuel demand during the summer driving season in the top oil-consuming nation.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, falling for a fourth consecutive session, with Al Rajhi Bank (1120.SE), opens new tab losing 0.6%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.6% higher, with Talaat Mostafa Group (TMG) (TMGH.CA), opens new tab advancing 2.1%.
TMG is to invest $21 billion in the SouthMED tourism development that includes luxury villas and a marina on Egypt's Mediterranean coast, its chief executive said on Tuesday.
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