Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence inflation was within reach of the Fed's 2% target.
U.S. personal consumption and core inflation data are due on Friday. Analysts are expecting the data to be benign enough to allow for rate cuts next month.
Fed fund futures are fully priced for a quarter-point cut at the Sept. 18 meeting, and imply a 38% chance of an outsized move of 50 basis points. The market also has 103 basis points of easing priced in for this year and another 122 basis points in 2025. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab advanced 1.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab closing 2% higher.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
Dubai's main share index (.DFMGI), opens new tab gained 0.8%, led by a 1.6% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab finished flat.
Oil prices - a catalyst for the Gulf's financial markets - rose nearly 3% on reports of a near total production stoppage in Libya, adding to earlier gains on concerns that escalating conflict in the Middle East could disrupt regional oil supplies.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.2%, helped by a 6.4% gain in EFG Holding (HRHO.CA), opens new tab.
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