Most Middle Eastern markets rebound as Fed calms investor nerves | Reuters

Most Middle Eastern markets rebound as Fed calms investor nerves | Reuters

Most stock markets in the Middle East rebounded on Tuesday, clawing back some of their losses from the previous session when fears of a possible U.S. recession spooked investors, as comments from the Federal Reserve officials soothed their nerves.

San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is "extremely important" for the central bank to prevent the labour market from tipping into a downturn.

Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.

The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025. FEDWATCH

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 finished 1.5% higher, led by a 9.9% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab rose 1.5%, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.

Dubai's main share index (.DFMGI), opens new tab jumped 2.3%, a day after falling more than 4%, with top lender Emirates NBD (ENBD.DU), opens new tab gaining 3.3%.

In Abu Dhabi, the index (.FTFADGI), opens new tab gained 1.2%, driven by a 2.1% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab.

The Qatari benchmark (.QSI), opens new tab, however, eased 0.1%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed 1.3% higher.

Egypt's fuel subsidies saw a 31% annual increase in the 2023/24 financial year, reaching 165 billion pounds ($3.35 billion), while food subsidies reached 133 billion pounds, a 10% year-on-year increase, Finance Minister Ahmed Kouchouk said on Tuesday.