Mideast Stocks: Most Gulf Markets Gain on US Rate Cut Hopes; Trade War Woes Weigh

Major stock markets in the Gulf rose in early trading on Tuesday, driven by heightened expectations of U.S. Federal Reserve interest rate reductions, though gains were restrained by renewed U.S.-China trade concerns.

Investors are awaiting Fed Chair Jerome Powell's speech at the NABE annual meeting later in the day for further cues into the central bank's policy path.

Traders expect a 99% and 94% chance of a 25-basis-point cut in October and December, respectively. Non-yielding gold tends to do well in low-interest-rate environments.

Policy shifts in the U.S., where most Gulf currencies are pegged to the dollar, often sway regional markets.

Saudi Arabia's benchmark index gained 0.2%, led by a 0.8% rise in oil behemoth Saudi Aramco and a 1.2% increase in Saudi Arabian Mining Company.

Dubai's main share index climbed 0.7%, boosted by a 3.4% jump in top lender Emirates NBD. Emirates NBD is in advanced talks to buy a stake in Indian private lender RBL Bank, Reuters reported on Tuesday, citing two people familiar with the deal.

Abu Dhabi's benchmark index edged 0.1% higher.

The Qatari index eased 0.1%, hit by a 1.1% fall in the Gulf's biggest lender, Qatar National Bank.

As negotiations between the U.S. and China intensify, the two nations from Tuesday began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world's two largest economies.