Stock markets in the Gulf rose in early trading on Wednesday as oil prices climbed, while investors braced for a key US inflation reading later in the day, reports Reuters.
Oil prices, a catalyst for the Gulf's financial markets, rose on a drop in US crude stockpiles and concerns of a possible widening of the Israel-Gaza war.
Dubai's benchmark stock index rose 0.5 per cent with most sectors in the green. Emirates NBD, the emirate's largest lender, added 1 per cent and toll operator Salik Company gained 1.2 per cent.
Salik said on Tuesday it will distribute all of its first half-year net profit after tax as dividend, equaling 7.263 Fils per share.
Saudi Arabia's benchmark stock index was up 0.3 per cent, with most of its constituents posting gains. Al Taiseer Group rose 1.8 per cent and Middle East Pharmaceutical advanced 2.3 per cent.
The Qatari benchmark index inched up 0.1 per cent, helped by communication, finance and materials sectors with the region's largest lender Qatar National Bank rising 0.7 per cent and telecom operator Ooredoo adding 1 per cent.
The Abu Dhabi benchmark index edged up 0.1 per cent, supported by a 0.8 per cent gain in conglomerate Alpha Dhabi and a 2.3 per cent rise in state-owned energy firm Abu Dhabi National Energy, which reported 17.7 per cent rise in quarterly net profit.
The US producer price index for final demand increased 0.1 per cent from a month ago in evidence of waning inflation pressures.
Investors now await all-important consumer price figures for July later in the day where economists look for rises of 0.2 per cent in both the headline and core, with the annual core slowing a tick to 3.2 per cent.
Market expectations are evenly split between a cut of 25 basis points and 50 bps at the Federal Reserve's next meeting in September, according to the CME's FedWatch Tool. Traders are pricing in a total of 100 bps of cuts this year.
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 US dollar.
