Mideast Stocks: Most Gulf markets end higher on rising US rate-cut optimism

Most stock markets in the Gulf ended higher on Wednesday, as comments from U.S. Federal Reserve officials boosted expectations of a September interest rate cut.

Fed Chair Jerome Powell said recent cooling in inflation data "add somewhat to confidence" that consumer prices are coming under control.

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

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 U.S. dollar.

Saudi Arabia's benchmark index <.TASI> gained 0.6%, led by a 5.6% rise in aluminium products manufacturer Al Taiseer Group <4143.SE> and a 2.5% increase in ACWA Power Co <2082.SE>.

The kingdom's crude oil exports rose in May, after slipping in April from a nine-month high hit in March, data from the Joint Organizations Data Initiative showed on Wednesday.

Dubai's main share index <.DFMGI> closed 0.5% higher, with blue-chip developer Emaar Properties <EMAR.DU> advancing 1.4% and top lender Emirates NBD <ENBD.DU> up 1.2%.

In Abu Dhabi, the index <.FTFADGI> edged 0.1% higher.

The Qatari benchmark <.QSI> dropped 0.4%, weighed down by a 1.7% decline in Qatar Islamic Bank <QISB.QA> despite reporting a rise in first-half net profit.

Outside the Gulf, Egypt's blue-chip index <.EGX30> advanced 1.8%, as most of its constituents were in positive territory, including tobacco monopoly Easter Company <EAST.CA> which was up 6.2%.

Egypt's total budget deficit fell to 505 billion Egyptian pounds ($10.5 billion) in fiscal 2023/24 that ended on June 30, compared with 610 billion pounds a year earlier, finance minister Ahmed Kouchouk said in a statement on Wednesday.

($1 = 48.1700 Egyptian pounds)

($1 = 3.6457 Qatar riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Krishna Chandra Eluri)