DUBAI: Most stock markets in the Gulf ended higher on Thursday, after US Federal Reserve minutes signalled interest-rate cuts were set to begin in a few weeks’ time. The Fed appears to be very much on track for an interest-rate cut in September after a “vast majority” of officials said such an action was likely, according to the minutes of the US central bank’s July 30-31 meeting. US PMI and initial jobless claims figures are due later in the day.

Interest rate futures markets have fully priced in a 25-basis-point cut from the Fed next month, with a 1/3 chance of a 50-bp cut. They project 222 bps of US easing by the end of 2025, against 163 bps for Europe.

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.