Most major Gulf markets steady ahead of US inflation test

Most major stock markets in the Gulf were little changed in early trade on Thursday, while the Saudi market was slightly lower, as traders counted down to US data later in the day that is expected to show inflation easing which should pave the way for rate cuts as soon as September, reports Reuters.

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.

US Federal Reserve Chair Jerome Powell told lawmakers on Capitol Hill overnight that "more good data" would build the case for the US central bank to cut interest rates. Futures pricing implies about a 75 per cent chance of a cut in September.

Economists forecast annual US CPI slowed to 3.1 per cent in June from 3.3 per cent in May.

Dubai's main share index added 0.1 per cent, helped by a 1.7 per cent rise in budget airliner Air Arabia.

In Abu Dhabi, the index was up 0.1 per cent.

Crude prices - a catalyst for the Gulf's financial markets - gained as crude stocks fell after US refineries ramped up processing and as gasoline inventories eased, signalling stronger demand.