Mideast Stocks: Major Gulf markets gain on higher oil prices ahead of Fed policy
Major stock markets in the Gulf rose in early trade on Tuesday, helped by a rebound in oil prices, while investors awaited the Federal Reserve's monetary policy meeting.
Oil - a catalyst for Gulf financial markets - gained more than $1 per barrel, rebounding on technical factors and bargain hunting after a decision by OPEC+ to boost output sent prices down in the previous session, although concerns about the market surplus outlook persisted.
Saudi Arabia's benchmark index gained 0.3%, supported by a 0.7% rise in Saudi Arabian Mining Company and a 0.3% increase in the country's biggest lender Saudi National Bank.
Elsewhere, oil giant Saudi Aramco added 0.2%.
Separately, the kingdom's budget airline flynas, backed by billionaire Prince Alwaleed Bin Talal, plans to start a public share offering later this month, it said on Monday, in the first IPO of a Gulf airline in nearly two decades.
Dubai's main share index rose 0.4%, led by a 1.1% gain in blue-chip developer Emaar Properties.
In Abu Dhabi, the index was up 0.2%.
The Fed's interest rate decision on Wednesday and Chair Jerome Powell's comments will be closely watched for clues into the central bank's rate trajectory. The Fed has held its policy rate in the 4.25%-4.50% range since last December.
The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the riyals, are pegged to the U.S. dollar.
Meanwhile, the Qatari index was up 0.3% on Tuesday, with the Gulf's biggest lender Qatar National Bank rising 1%.
However, caution still persists due to renewed concerns over U.S. tariffs and their potential impact on economic growth.
On Monday, U.S. President Donald Trump said he intends to announce pharmaceutical tariffs within the next two weeks.
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