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Most stock markets in the Gulf rose in early trade on Monday amid expectations of a US rate cut in September, although heightened geopolitical tensions in the region limited gains.
The US central bank's Federal Open Market Committee meets on July 30-31 and is expected to keep rates unchanged. However, recent softer data and comments from Fed officials have prompted the rate futures market to fully price in a 25 basis-point cut in September.
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 US dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.1 per cent, helped by a 1.3 per cent rise in ACWA Power Company (2082.SE) and a 2.3 per cent increase in Dr Sulaiman Al-Habib Medical Services (4013.SE).
Dubai's main share index (.DFMGI) advanced 0.7 per cent, with blue-chip developer Emaar Properties (EMAR.DU) gaining 1.7 per cent and top lender Emirates NBD (ENBD.DU) was up 1.6 per cent.
The Abu Dhabi index (.FTFADGI) added 0.4 per cent.
In Qatar, the index (.QSI) eased 0.1 per cent, hit by a 0.5 per cent fall in Industries Qatar (IQCD.QA).
Investors also tracked the escalation in Middle East tensions.
Israel's security cabinet authorized Prime Minister Benjamin Netanyahu's government to decide on the "manner and timing" of a response to a rocket strike in the Israeli-occupied Golan Heights that killed 12 teenagers and children, which Israel and the United States blamed on Lebanese armed group Hezbollah.
Services to Beirut airport are being cancelled or delayed over fears of escalating conflict in Lebanon.