Most Gulf markets gain on US rate cut hopes | Reuters

Most Gulf markets gain on US rate cut hopes | Reuters

Most stock markets in the Gulf ended higher on Monday as investors grew more optimistic about a September U.S. rate cut, ahead of a busy week that will see the release of a key inflation report and Federal Reserve Chair Jerome Powell's testimony.

A slowdown in U.S. jobs on Friday added further to the case for a Fed rate cut in September.

U.S. inflation is easing and the job market has returned to the "tight but not overheated" situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.6% and Saudi Awwal Bank (1060.SE), opens new tab advancing 3.2%.

Fed Chair Jerome Powell will have a chance to offer his outlook when he appears before Congress on Tuesday and Wednesday, while several other Fed officials are speaking this week.

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 added 0.3%, led by a gain in top lender Emirates NBD (ENBD.DU), opens new tab and a 2% increase in diversified investment group Dubai Investments (DINV.DU), opens new tab.

In Qatar, the index (.QSI), opens new tab closed 0.3% higher, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.7%, while Qatar National Bank (QNBK.QA), opens new tab (QNB) was up 0.3%.

QNB, the Gulf's biggest lender, beat analyst estimates on Monday after reporting its net profit rose 10.8% in the second quarter from a year earlier.

The Abu Dhabi index (.FTFADGI), opens new tab was down 0.1%.

Crude prices - a key catalyst for the Gulf's financial markets - edged lower after gaining for four weeks as supply disruption worries eased on hopes of a ceasefire deal in Gaza, but the potential impact of Hurricane Beryl on supplies kept the slide in check.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.7%, weighed down by a 1.3% drop in Commercial International Bank (COMI.CA), opens new tab.