Mideast Stocks: Most Gulf markets gain on positive earnings; Saudi eases

Most stock markets in the Gulf ended higher on Tuesday, helped by positive corporate earnings, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.

Dubai's main share index <.DFMGI> advanced 0.9%, with top lender Emirates NBD <ENBD.DU> rising 0.9%, while Emirates Integrated Telecommunications <DU.DU> closed 1.7% higher, following a sharp rise in second-quarter earnings.

Saudi Arabia's benchmark index <.TASI> dropped 0.6%, extending losses from the previous session, with aluminium products manufacturer Al Taiseer Group <4143.SE> losing 2.7%, and oil giant Saudi Aramco <2222.SE> retreating 1.1%.

Oil prices - a catalyst for the Gulf's financial markets - dipped as growing expectations of a ceasefire in the war in Gaza weighed on prices, more than offsetting news of a potential September interest-rate cut in the European Union that supported sentiment.

In Abu Dhabi, the index <.FTFDGI> dropped 0.5%, ending a six-session winning streak.

The United Arab Emirates hopes to reactivate trade talks with the European Union by the end of the year, the UAE trade minister said on Monday, and is optimistic the talks would be bilateral.

The Qatari benchmark <.QSI> added 0.2%, with the Gulf's biggest lender Qatar National Bank <QNBK.QA> gaining 0.3%.

Outside the Gulf, Egypt's blue-chip index <.EGX30> finished 0.7% higher, led by a 0.7% increase in top lender Commercial International Bank <COMI.CA>.

On Sunday, the lender said second-quarter net profit rose by 96% year-on-year to 15.6 billion Egyptian pounds ($322.91 million).

Egypt reduced its external debt by $14 billion in the five months to end-May, the sharpest such decline in the country's history, a statement released on Monday by Egypt's press centre said.

($1 = 48.3100 Egyptian pounds)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Maju Samuel)