Most stock markets in the Gulf ended higher on Tuesday after data showed a smaller than expected rise in core U.S. inflation and talks between Washington and major trading partners continued.
U.S. President Donald Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30% duties on imports from the European Union and Mexico from August 1.
U.S. consumer prices picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation that has kept the Federal Reserve cautious about resuming its interest rate cuts. However, the increase was in line with expectations and the core reading rose less than forecast.
The Fed's actions have a significant impact on the Gulf region's monetary policy, as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab advanced 1%, buoyed by a 5.2% surge in top lender Emirates NBD (ENBD.DU), opens new tab and a 1.8% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab gained 0.7%, with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab jumping 7.6%, its biggest intraday rise since April 2020.
The lender posted second-quarter net profit of 2.32 billion dirham ($631.65 million), exceeding analysts' consensus estimate, according to data compiled by LSEG.
The upbeat results boosted sentiment across the banking sector, with both Abu Dhabi and Dubai benefiting from renewed investor confidence in financials, said George Pavel, general manager at Naga.com Middle East.
"Dubai's market also drew strength from its real estate sector, adding to the positive momentum," he added.
The Qatari index (.QSI), opens new tab closed up 0.5%, led by a 1.7% increase in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.1%, hit by a 1.3% fall in Al Rajhi Bank (1120.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab fell 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - were little changed after Trump's lengthy 50-day deadline for Russia to end its Ukraine war and avoid sanctions eased immediate supply concerns.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%.
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