Most Gulf bourses rise on US rate cut bets

Most major stock markets in the Gulf rose in early trade on Monday, tracking an overnight rally in US stocks on optimism that the US Federal Reserve could begin cutting interest rates early next year.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the Dollar.

Saudi Arabia's benchmark index gained 0.5 per cent, with Elm Co rising 1.3 per cent and auto rental firm Lumi putting on 1.2 per cent.

Oil giant Saudi Aramco, however, eased 0.3 per cent.

Oil prices - a catalyst for the Gulf's financial markets - steadied after falling sharply in the previous session, as concerns eased about shipping disruptions along the Red Sea route even as tensions in the Middle East continued to rise.

Dubai's main share index added 0.4 per cent, with sharia-compliant lender Dubai Islamic Bank rising 0.9 per cent.

The Abu Dhabi index was up 0.3 per cent.

In Qatar, the benchmark index dropped 0.6 per cent, on course to snap a nine-session winning streak, and most of the stocks were in negative territory.