Most stocks markets in the Gulf were up in early trading on Thursday in tandem with a rally in global equities after a U.S. inflation report boosted expectations of a Federal Reserve interest rate cut.

A Labor Department report showed U.S. consumer prices in November increased by the most in seven months. Markets are pricing in a 97% chance the Fed will cut rates by 25 basis points next week, up from an 86% chance before the data.

The Fed’s decisions impact monetary policy in the Gulf, where most currencies including the Saudi riyal, are pegged to the U.S. dollar.

Saudi Arabia’s benchmark stock index inched up 0.1%, helped by gains in materials, consumer staples and utilities. Saudi Arabian Mining Company added 1% after the mining firm’s shareholders approved a capital increase for acquisition of MOSAIC’s stake in Ma’aden Wa’ad Al Shamal Phosphate.

The Abu Dhabi benchmark index was up 0.1%, aided by a 1% gain in conglomerate Alpha Dhabi Holding and a 1.4% rise in Burjeel Holding. Healthcare provider Burjeel has partnered with Aasandha to provide Maldivian patients access to specialized medical care.

Most Gulf markets gain ahead of US inflation report

Among other gainers, Dana Gas was up 1.2% after the energy firm said it has received a $20 million payment from the Egyptian Government.

The Qatari benchmark index rose 0.3%, supported by gains in almost all stocks. Vodafone Qatar added 1.1%, and Qatar Islamic Bank gained 0.8%.

Meanwhile, Qatar recorded a budget surplus of 100 million riyals ($27.43 million) in the third quarter of 2024, the finance ministry said on Wednesday.

Dubai’s benchmark stock index was down 0.4% with most sectors in the red.

Talabat Holding, however, rose 1.3% in early trade after the food ordering business showed a timid performance since its listing on Tuesday.

Talabat raised $2 bln in UAE’s largest IPO this year after parent Delivery Hero sold a 20% stake.