Mideast Stocks: Gulf Stocks Gain on Earnings Optimism, Ahead of US Fed Outlook

Major Gulf equities rebounded in volatile trade on Wednesday as investors shrugged off underwhelming earnings and rotated into selective buying ahead of key corporate results and the U.S. Federal Reserve's policy decision, due later in the day.

While the Fed is widely expected to hold interest rates steady, the possibility of dovish dissent has provided a measure of optimism.

The Fed's stance holds significant implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it a key anchor for regional monetary stability.

Saudi Arabia's benchmark index <.TASI> picked up 0.8% driven by broad sector gains and investor enthusiasm ahead of major earnings announcements from SABIC <2010.SE> and Aramco <2222.SE> due next week.

Halwani Brothers <6001.SE> showed sharp intraday volatility, dropping nearly 5% after reporting a significant quarterly profit decline, before rebounding to close up by over 4%, reflecting a mix of sell-offs, bargain hunting and short-covering.

Dubai's benchmark index <.DFMGI> rose 0.5% to hit over a 17-1/2-year high, logging its sixth straight session of gains, as hopes remain high ahead of key earnings, mainly from the real estate sector. Gains were driven by a 1.5% jump in toll operator Salik <SALIK.DU> maintaining the same stretch of wins.

The Abu Dhabi index <.FTFADGI> gained 0.1%, lifted by selective buying amid a mixed but largely encouraging earnings season.

ADNOC Drilling <ADNOCDRILL.AD> advanced 1%, boosted by solid growth and a confident full-year outlook.

Shares of Emirates Telecommunications Group(e&) <EAND.AD> added nearly 1.5%, as the telecom giant is slated to report its quarterly earnings on Thursday.

Qatar's stock index <.QSI> bounced back 0.1%, recovering from two sessions of profit-taking, as optimism builds ahead of heavyweight earnings announcements.

Beyond earnings, market sentiment remains focused on global trade developments ahead of the August 1 U.S. tariff deadline.

Following two days of negotiations, the U.S. and China agreed to seek an extension of their 90-day tariff truce, set to expire on August 12.

Meanwhile, South Korea was also lobbying to secure a trade deal as its officials met U.S. Commerce Secretary Howard Lutnick in Washington.

While concerns linger over the impact of tariff policies on global growth and energy demand, the latest developments have helped bolster confidence in the resilience of oil-dependent Gulf economies.

Outside the Gulf, Egypt's blue-chip index <.EGX30>, eased 0.7%, as investors locked in profits following a recent record peak.

Talaat Moustafa Group <TMGH.CA> fell 1.1%.