Major stock markets in the Gulf rose in early trade on Tuesday as comments from Federal Reserve Chair Jerome Powell boosted bets for a September rate cut, while investors awaited more U.S. economic data for monetary policy cues.
Powell said on Monday the three U.S. inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.
Markets have now fully priced in a quarter-point rate cut from the U.S. central bank in September, with a total easing of 68 basis points (bps) expected by the end 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.
Saudi Arabia's benchmark index (.TASI), opens new tab added 0.3%, helped by a 2.4% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab added 0.1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gaining 1.2%.
Dubai's main share index (.DFMGI), opens new tab added 0.1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gaining 1.2%.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.1%, led by a 0.3% increase in the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab.
Meanwhile, the Qatari benchmark (.QSI), opens new tab lost 0.2%, led by a 0.3% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
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