Most stock markets in the Gulf rose in early trade on Monday amid expectations of a U.S. rate cut in September, although heightened geopolitical tensions in the region limited gains.
The U.S. central bank's Federal Open Market Committee meets on July 30-31 and is expected to keep rates unchanged. However, recent softer data and comments from Fed officials have prompted the rate futures market to fully price in a 25 basis-point cut in September.
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 U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.1%, helped by a 1.3% rise in ACWA Power Company (2082.SE), opens new tab and a 2.3% increase in Dr Sulaiman Al-Habib Medical Services (4013.SE), opens new tab. Dubai's main share index (.DFMGI), opens new tab advanced 0.7%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab gaining 1.7% and top lender Emirates NBD (ENBD.DU), opens new tab was up 1.6%.
The Abu Dhabi index (.FTFADGI), opens new tab added 0.4%. In Qatar, the index (.QSI), opens new tab eased 0.1%, hit by a 0.5% fall in Industries Qatar (IQCD.QA), opens new tab. Investors also tracked the escalation in Middle East tensions.
Israel's security cabinet authorized Prime Minister Benjamin Netanyahu's government to decide on the "manner and timing" of a response to a rocket strike in the Israeli-occupied Golan Heights that killed 12 teenagers and children, which Israel and the United States blamed on Lebanese armed group Hezbollah.
