Most stock markets in the Gulf ended higher on Monday as investor sentiment remained upbeat on hopes of a September rate cut in the United States.

The Federal Reserve is expected to kick off a rate-cutting cycle at its monetary policy meeting on Sept. 17-18.

Traders currently see a 67% chance of a 25 basis-point (bp) reduction by the U.S central bank this month and a 33% chance of a 50-bp cut, according to the CME FedWatch tool.

Investors await the U.S. ISM manufacturing and services prints, along with JOLTS job openings, ADP private payrolls and jobless claims data this week.

Focus will be on the U.S. jobs report, due on Friday, which could be key for investors to gauge the size of potential rate cuts by the Federal Reserve this month.

Monetary policy in the six-member Gulf Cooperation Council (GCC), including Saudi Arabia, is usually guided by the Fed’s decisions, as most regional currencies are pegged to the U.S. dollar.

Dubai’s main share index gained 0.7%, led by a 3.2% rise in blue-chip developer Emaar Properties and a 1.5% increase in top lender Emirates NBD.

In Abu Dhabi, the index added 0.3%.

Most Gulf markets gain on US rate cut prospects

The Qatari benchmark advanced 1.1%, as most of its constituents were in positive territory including Qatar Islamic Bank, which finished 2.6% higher.

Separately, state-owned QatarEnergy will boost its production of urea to more than 12.4 million tons annually from 6 million tons currently, its CEO said in a press conference on Sunday, without giving a timeframe.

Saudi Arabia’s benchmark index, however, eased 0.2%, hit by a 1% fall in aluminium products manufacturer Al Taiseer Group.

Outside the Gulf, Egypt’s blue-chip index dropped 0.6%, weighed down by a 3.6% drop in EFG Holding.

The Central Bank of Egypt CBE will leave overnight interest rates unchanged when its monetary policy committee meets on Thursday as inflation continues to decline, a poll of analysts forecast.

------------------------------------------ SAUDI ARABIA     dropped 0.2% to 12,167 ABU DHABI        rose 0.3% to 9,308 DUBAI            gained 0.7% to 4,357 QATAR            advanced 1.1% to 10,344 EGYPT            lost 0.6% to 30,732 BAHRAIN          eased 0.4% to 1,949 OMAN             rose 0.3% to 4,772 KUWAIT           was flat at 7,803------------------------------------------