Most stock markets in the Gulf closed higher on Monday, supported by investor optimism that the U.S. Federal Reserve will cut its interest rates further this year.
The U.S. said on Friday its Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, versus a 0.2% increase in July, matching the estimate of economists polled by Reuters.
Traders are currently pricing in a 90% chance of a Fed rate cut in October, with an around 65% probability of another easing in December, according to the CME FedWatch Tool.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 1.8%, ending two sessions of losses, led by a 3.7% rise in Al Rajhi Bank (1120.SE), opens new tab and a 2.2% increase in oil giant Saudi Aramco (2222.SE), opens new tab.
The Saudi bourse soared 5.1% on Wednesday, marking its largest single-day gain in more than five years, driven by broad-based strength. The gains followed a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, with sharia-compliant lender Dubai Islamic Bank (.DFMGI), opens new tab rising 1.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Oil prices - a catalyst for the Gulf's financial markets - fell by nearly 2% as OPEC+ plans for another increase to oil output in November and the resumption of oil exports by Iraq's Kurdistan region via Turkey raised the global supply outlook.
The Qatari index (.QSI), opens new tab was up 0.2%, supported by a 3.6% gain in telecom firm Ooredoo (ORDS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.6% higher, with Emaar Misr For Development (EMFD.CA), opens new tab jumping 5.9%.
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