Most Gulf shares gain in early trade as oil steadies

Most stock markets in the Gulf rose in early trading on Wednesday, as oil prices steadied, while investors braced for a key U.S. inflation reading later this week.

Oil prices, the main driver of the Gulf's financial markets, rose 0.3% on the possibility of an inventory drawdown and geopolitical risks in the Middle East, with Brent BRN1! trading at $85.2 per barrel by 0813 GMT.

The Qatari benchmark index GNRI was up 0.1%, helped by gains in utilities, finance and real estate sectors, with Qatar Islamic Bank QIBK rising 0.8% and Qatar Electricity and Water QEWS adding 1%.

The Abu Dhabi benchmark index FADGI edged up 0.1%, supported by a 1.5% gain in real estate investment company Eshraq Investment ESHRAQ and a 0.7% rise in First Abu Dhabi Bank FAB, the UAE's largest lender.

Dubai's benchmark stock index DFMGI bounced back after two sessions of losses and rose 0.2% with most sectors in the green. Toll-road operator Salik Co SALIK gained 1.2% and National Central Cooling TABREED advanced 2.7%.

Meanwhile, the UAE has sold bonds worth $1.5 billion at a yield of 60 basis points over U.S. Treasuries after demand exceeded $5.75 billion, an arranging bank document showed on Tuesday.

Saudi Arabia's benchmark stock index TASI fell 0.2%, pressured by losses in IT, finance, utilities and materials sectors. ADES Holding 22382 slipped 2.4% and Riyad Bank 1010 dropped 1.4%.

Investors are awaiting the U.S. personal consumption expenditures (PCE) price index - the Federal Reserve's favoured gauge of inflation - due on Friday, which could provide further clues on the Fed's rate cut trajectory.

Most Gulf currencies are pegged to the dollar and any change to the U.S. monetary policy is usually followed by the central banks of Saudi Arabia, the UAE and Qatar.