Gulf shares gain on oil boost; US inflation in focus | Reuters

Gulf shares gain on oil boost; US inflation in focus | Reuters

Stock markets in the Gulf rose in early trading on Wednesday as oil prices climbed, while investors braced for a key U.S. inflation reading later in the day.

Oil prices, a catalyst for the Gulf's financial markets, rose on a drop in U.S. crude stockpiles and concerns of a possible widening of the Israel-Gaza war.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.5% with most sectors in the green. Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, added 1% and toll operator Salik Company (SALIK.DU), opens new tab gained 1.2%.

Salik said on Tuesday it will distribute all of its first half-year net profit after tax as dividend, equaling 7.263 Fils per share.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, with most of its constituents posting gains. Al Taiseer Group (4143.SE), opens new tab rose 1.8% and Middle East Pharmaceutical (4016.SE), opens new tab advanced 2.3%.

The Qatari benchmark index (.QSI), opens new tab inched up 0.1%, helped by communication, finance and materials sectors with the region's largest lender Qatar National Bank (QNBK.QA), opens new tab rising 0.7% and telecom operator Ooredoo (ORDS.QA), opens new tab adding 1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, supported by a 0.8% gain in conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab and a 2.3% rise in state-owned energy firm Abu Dhabi National Energy (TAQA.AD), opens new tab, which reported 17.7% rise in quarterly net profit.

The U.S. producer price index for final demand increased 0.1% from a month ago in evidence of waning inflation pressures.

Investors now await all-important consumer price figures for July later in the day where economists look for rises of 0.2% in both the headline and core, with the annual core slowing a tick to 3.2%.

Market expectations are evenly split between a cut of 25 basis points and 50 bps at the Federal Reserve's next meeting in September, according to the CME's FedWatch Tool. Traders are pricing in a total of 100 bps of cuts this 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.