Mideast Stocks: Most Gulf Bourses Gain on US Rate Cut Hopes, Oil

Most Gulf stock markets closed higher on Tuesday as investor optimism over potential U.S. interest rate cuts and steady oil prices eclipsed concerns over the U.S. government shutdown. As the shutdown extends into its second week, investors are turning to private and alternative economic data to gauge the U.S. interest rate trajectory, with a 25 basis point rate cut at this month's policy meeting appearing nearly fully priced in.

The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy. Dubai's main share index rose 0.5%, with top lender Emirates NBD advancing 2.6%. In Abu Dhabi, the index finished 0.2% higher.

Oil prices - a catalyst for the Gulf's financial markets - were steady as investors weighed a smaller than expected increase to OPEC+ output in November against a backdrop of possible oversupply. The Qatari index added 0.2%, supported by a 0.8% gain in Qatar Islamic Bank.

Market participants also assessed U.S. President Donald Trump's plan to end the two-year Gaza conflict, seeking relief from persistent geopolitical strains. Saudi Arabia's benchmark index, however, fell 0.2%, snapping two sessions of gains, hit by a 1.8% fall in Saudi Arabian Mining Company.

Outside the Gulf, Egypt's blue-chip index finished flat. Egypt's annual headline inflation rate is expected to have decreased for a fourth month running in September to 11.0%, extending a two-year downward trend, a Reuters poll found.

Saudi Arabia fell 0.2% to 11,583

Abu Dhabi added 0.2% to 10,082

Dubai rose 0.5% to 5,940

Qatar gained 0.2% to 10,912

Egypt ended flat at 37,097

Bahrain was up 0.5% to 1,976

Oman eased 0.1% to 5,181

Kuwait rose 0.4% to 9,319