Most major stock markets in the Gulf rose in early trade on Thursday following soft US labour market data that buoyed investor expectations of interest rate cuts later this year.

Data on Wednesday showed signs of a weakening US labour market, with unemployment claims increasing to 238,000, suggesting that the Fed could start cutting rates in September.

The chances of a September rate cut rose to 74% from 65% before the data, with markets pricing in 47 basis points of easing this year.

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 US dollar.

Saudi Arabia’s benchmark index gained 0.2%, on course to end four sessions of losses, helped by a 1.6% rise in aluminium maker Al Taiseer Group and a 1.6% increase in ACWA Power Co.

Elsewhere, oil giant Saudi Aramco was up 0.5% amid a weaker global oil market.

Aramco and Abu Dhabi National Oil Company (ADNOC) have been separately considering bids for Australian gas producer Santos , Bloomberg News reported on Thursday, citing people with knowledge of the matter.

Dubai’s main share index added 0.1%, with utility firm Dubai Electricity and Water Authority gaining 1.2%. Qatar’s benchmark gained 0.2%, with the Gulf’s biggest lender Qatar National Bank rising 0.5%.

Most Gulf markets gain on US rate cut bets

Meanwhile, Abu Dhabi’s benchmark index eased 0.2%, hit by a 1.4% fall in Emirates Telecommunications Group Company.

Commercial Court Of Rabat directed Emirates Telecommunications’ subsidiary Maroc Telecom to pay 6.368 billion Moroccan dirham ($641.7 million) to Wana Corporate for alleged anti-competitive practices.