Dec 27 Reuters Most major Gulf stock markets rose in early trade on Wednesday on optimism that the US Federal Reserve could begin cutting rates as early as March, although geopolitical tensions in the region limited gains.

The rate cut expectations were boosted by US data released on Friday showed that by some key measures inflation was now at or below the central bank39;s 2 target.

Monetary policy in the sixmember Gulf Cooperation Council GCC is usually guided by the Federal Reserve39;s decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia39;s benchmark index gained 0.5, with Etihad Atheeb Telecommunication rising 2.9 and oil company Saudi Aramco adding 0.5.

Separately, Saudi Arabia39;s cabinet on Tuesday announced its approval of contracting regulations for firms that do not have regional headquarters in the Kingdom, Saudi state news agency SPA reported.

The decision comes just days before Saudi Arabia39;s January 2024 deadline for companies to move their regional headquarters to the kingdom or risk losing hundreds of billions of dollars in lucrative government contracts.

The Qatari index added 0.1, with the Gulf39;s biggest lender Qatar National Bank putting on 1.1.

In Abu Dhabi, the index was up 0.1.

Trading volumes were mostly low because of the absence of many foreign investors for Christmas and New Year holidays.

Dubai39;s main share index eased 0.2, with top bank Emirates NBD down 0.6.

Reporting by Ateeq Shariff in Bengaluru….