Most stock markets in the Gulf ended higher on Monday as investors grew more optimistic about a September U.S. rate cut, ahead of a busy week that will see the release of a key inflation report and Federal Reserve Chair Jerome Powell’s testimony.

A slowdown in U.S. jobs on Friday added further to the case for a Fed rate cut in September.

U.S. inflation is easing and the job market has returned to the “tight but not overheated” situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.

Saudi Arabia’s benchmark index gained 0.3%, with Al Rajhi Bank rising 0.6% and Saudi Awwal Bank advancing 3.2%.

Fed Chair Jerome Powell will have a chance to offer his outlook when he appears before Congress on Tuesday and Wednesday, while several other Fed officials are speaking this week.

Most Gulf markets gain on US rate cut bets

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 added 0.3%, led by a gain in top lender Emirates NBD and a 2% increase in diversified investment group Dubai Investments.

In Qatar, the index closed 0.3% higher, with Qatar Islamic Bank rising 0.7%, while Qatar National Bank (QNB) was up 0.3%.

QNB, the Gulf’s biggest lender, beat analyst estimates on Monday after reporting its net profit rose 10.8% in the second quarter from a year earlier.

The Abu Dhabi index was down 0.1%.

Crude prices - a key catalyst for the Gulf’s financial markets - edged lower after gaining for four weeks as supply disruption worries eased on hopes of a ceasefire deal in Gaza, but the potential impact of Hurricane Beryl on supplies kept the slide in check.

Outside the Gulf, Egypt’s blue-chip index fell 0.7%, weighed down by a 1.3% drop in Commercial International Bank.

======================================= SAUDI ARABIA   rose 1.1% to 9,473 ABU DHABI      fell 0.1% to 9,133 DUBAI          gained 0.3% to 4,082 QATAR          added 0.3% to 10,157 EGYPT          lost 1.1% to 11,337 BAHRAIN        was up 0.1% to 2,005 OMAN           was flat at 4,687 KUWAIT         advanced 1.2% to 7,692=======================================