Major stock markets in the Gulf were mixed in early trade on Tuesday, as investors awaited Federal Reserve Chair Jerome Powell’s testimony for clues on interest rate cuts.

Powell is set to appear before Congress on Tuesday and Wednesday, with investors wagering an 80% chance of a rate cut in September following soft labour market data.

Focus will also be on the US consumer price report for June on Thursday, where headline inflation is expected to slow to 3.1% from 3.3% in May, and core inflation is seen steady at 3.4%.

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%, with aluminium products maker Al Taiseer Group rising 0.5%.

On the other hand, oil giant Saudi Aramco dropped 0.5%.

Oil prices - acatalyst for the Gulf’s financial markets - fell after a hurricane that hit a key US oil producing hub in Texas caused less damage than expected.

O/R Aramco returned to the debt market on Tuesday after a three-year hiatus, mandating banks for 10-, 30- and 40-year senior unsecured tranche debt sales, a document from one of the lenders showed.

Dubai’s main share index added 1.5%, with blue-chip developer Emaar Properties rising 1.5%.

Most Gulf markets gain on US rate cut hopes

The number of homes worth $10 million or more sold in Dubai held steady in the first half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.

Meanwhile, Qatar’s benchmark index eased 0.1%, hit by a 1.2% fall in Qatar International Islamic Bank.

However, Qatar National Bank, the Gulf’s biggest lender, edged 0.1%, a day after reporting a rise in second-quarter profit.

In Abu Dhabi, the index was down 0.1%.