Major stock markets in the Gulf rose in early trade on Tuesday as comments from Federal Reserve Chair Jerome Powell boosted bets for a September rate cut, while investors awaited more US economic data for monetary policy cues.

Powell said on Monday the three US inflation readings over the second quarter of this year “add somewhat to confidence” that the pace of price increases is returning to the Fed’s target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

Markets have now fully priced in a quarter-point rate cut from the US central bank in September, with a total easing of 68 basis points (bps) expected by the end of the 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.

Major Gulf markets gain on firm oil prices, start to earnings season

Saudi Arabia’s benchmark index added 0.3%, helped by a 2.4% rise in aluminium products manufacturer Al Taiseer Group . Dubai’s main share index added 0.1%, with sharia-compliant lender Dubai Islamic Bank gaining 1.2%.

In Abu Dhabi, the index was up 0.1%, led by a 0.3% increase in the country’s biggest lender First Abu Dhabi Bank.

Meanwhile, the Qatari benchmark lost 0.2%, led by a 0.3% fall in the Gulf’s biggest lender Qatar National Bank .