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 Thursday supported by expectations for the U.S. central bank to start cutting interest rates next month, although rising geopolitical tensions weighed on sentiment.

Data on Thursday showed the world's largest economy grew a little faster than expected in the second quarter, adding to growing expectations that the United States could avoid recession, or go through just a mild one.

Separately, a Labor Department report showed initial claims for unemployment benefits for the week ending Aug. 24 stood at 231,000, marginally lower than estimates of 232,000 as per economists polled by Reuters.

Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 1% and Al Rajhi Bank (1120.SE), opens new tab increasing 1.6%.

Dubai's main share index (.DFMGI), opens new tab added 0.2%, with toll operator Salik (SALIK.DU), opens new tab advancing 5.2%.

In Qatar, the benchmark (.QSI), opens new tab closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.2%.

The Abu Dhabi index (.FTFADGI), opens new tab retreated 0.6%, weighed down by a 0.3% fall in top lender First Abu Dhabi Bank (FAB.AD), opens new tab.

In the Middle East, fighting continued in the Gaza Strip between Israel and Hamas militants, with no signs yet of a concrete breakthrough in ceasefire talks in Cairo.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.2%, helped by a 3.9% rise in Talaat Mostafa Holding (TMGH.CA), opens new tab.

Meanwhile, lending to the government by Egypt's central bank continued to climb in the last fiscal year, according to the central bank's newly released annual budget, even as inflation has slid from an all-time peak in September.