Mideast Stocks: Major Gulf Markets Gain on US Rate Cut Hopes

Major stock markets in the Gulf rose in early trade on Wednesday as investor confidence grew that the U.S. Federal Reserve will cut interest rates this month.

Markets are now looking forward to the U.S. non-farm payrolls data, due on Friday, to determine the size of the Fed's potential rate cut later this month.

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

U.S. rate futures are pricing in a 92% chance of a 25-basis-point Fed rate cut at the end of the two-day policy meeting on September 17, according to CME Group's FedWatch tool.

Saudi Arabia's benchmark index rose 0.2%, helped by a 2.4% gain in Umm al Qura for Development and Construction .

The kingdom's non-oil private sector growth was stable in August, with business activity expanding at a slightly quicker pace than in July, as new orders increased, a survey showed on Wednesday.

Dubai's main share index added 0.1%, with top lender Emirates NBD rising 1.8%.

In Abu Dhabi, the index gained 0.6%.

Oil prices - a catalyst for the Gulf's financial markets - eased in Asia but held near one-month highs on the back of new U.S. sanctions on a network of shipping companies and vessels, while traders looked ahead to an OPEC+ meeting over the weekend.

The Qatari index was up 0.1%, with the Gulf's biggest lender Qatar National Bank climbing 0.8%.