Most Gulf markets gain ahead of US Fed rate decision

Most major stock markets in the Gulf rose in the early trade on Wednesday, tracking higher oil prices, while the major focus was on the outcome of the US Federal Reserve's June policy meeting, reports Reuters.

The Fed is widely expected to skip raising interest rates this month after a softer US inflation report and investors' cautious mood is likely to extend to Europe when markets open.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Saudi Arabia's benchmark index gained 0.5 per cent, with Al Rajhi Bank rising 0.7 per cent and Dr Sulaiman Al-Habib Medical Services climbing 0.8 per cent.

In Abu Dhabi, the index added 0.2 per cent.

Oil prices - a key catalyst for the Gulf's financial markets - inched up ahead of Fed's policy decision, key economic data from China and government data on US crude stockpiles.