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The US rate cuts have boosted the economy of most major Gulf countries.

The major Gulf stock markets edged up in early trading on Monday. This was helped by rising expectations that the U.S. Federal Reserve will cut rates this month. However, weak oil prices limited gains.

The U.S. unemployment rate rose to nearly four-year levels in August. This confirms that the labour market is softening, which will lead the Fed to cut rates next week.

According to CME FedWatch, traders have priced in a rate cut of 25 basis points (bp), with an 8 percent chance of a 50-bp jumbo cut.

The Fed's position is important in the Gulf where the majority of currencies are pegged with the U.S. Dollar, anchoring the regional monetary policies.

Saudi Arabia's benchmark stock index gained 0.1% in a volatile trading session. This was aided by the 0.8% increase in Saudi Arabian Mining Company.

Oil prices, which are a major factor in the Gulf financial markets, have risen by more than a dollar, recovering some of the losses of the previous week. This was aided by the prospect of further sanctions against Russian crude following an overnight attack on Ukraine.

OPEC+ announced plans to increase production in October, although the amount was modest.

A poll shows that Brent crude will average $67.65 a barrel by 2025 as increased production from major producers and U.S. Tariff threats limit demand.

Dubai's main stock index was flat.

The index rose 0.1% in Abu Dhabi.

The benchmark in Qatar rose by 0.1%. This was boosted by an increase of 0.6% for petrochemical producer Industries Qatar. (Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)

(source: Reuters)