Stock markets in the United Arab Emirates edged higher on Friday as optimism about a U.S. interest rate cut underpinned sentiment ahead of key jobs numbers later in the day.

The data is expected to show a slowdown in hiring and an uptick in unemployment, possibly leaving the door open for the U.S. Federal Reserve to cut rates.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions as most regional currencies are pegged to the U.S. dollar.

Dubai’s main share index gained 0.1%, helped by a 0.7% rise in sharia-compliant lender Dubai Islamic Bank.

Most Gulf markets gain on rate cut hopes

Meanwhile, efforts to secure a ceasefire and hostage release in Gaza were gathering momentum on Friday after Hamas made a revised proposal on the terms of a deal and Israel said it would resume stalled negotiations.

In Abu Dhabi, the index finished 0.1%, with the country’s biggest lender First Abu Dhabi Bank advancing 0.8%.

Oil prices - a catalyst for the Gulf’s financial markets - edged lower but were trading near their highest since late April and on track for a fourth straight week of gains, driven by hopes of strong summer fuel demand and some supply concerns.

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 ABU DHABI      rose 0.1% to 9,139
 DUBAI          added 0.1% to 4,070
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