Most Gulf markets extend gains on rate cuts; regional tensions weigh

Most major stock markets in the Gulf rose in early trade on Monday, continuing a rally sparked by interest rate cuts enacted by regional central banks, although the gains were limited by ongoing geopolitical tensions, reports Reuters.
Last week, most Gulf central banks cut their key interest rates after the US Federal Reserve decreased rates by half a percentage point citing "greater confidence" on inflation.
The Fed projected a further half-point rate cut by the year-end, a full point next year and a half-point trim in 2026.
Monetary policy in the Gulf Cooperation Council often aligns with the Fed's decisions as most regional currencies are pegged to the US dollar.
Saudi Arabia's benchmark index gained 0.4 per cent, with aluminium products manufacturer Al Taiseer Group rising 1 per cent and ACWA Power Company advancing 3.9 per cent.
Qatar's benchmark index rose 0.3 per cent, led by a 0.7 per cent increase in the Gulf's biggest lender Qatar National Bank.
Dubai's main share index added 0.3 per cent, with MashreqBank climbing 6.3 per cent.
The Israeli military launched a new wave of attacks against Hezbollah in southern Lebanon on Monday, it said in a statement.
In Abu Dhabi, the ADX General index was flat.