Sept 23 Reuters Most major stock markets in the Gulf rose in early trade on Monday, continuing a rally sparked by interest rate cuts enacted by regional central banks, although the gains were limited by ongoing geopolitical tensions.

Last week, most Gulf central banks cut their key interest rates after the U.S. Federal Reserve decreased rates by half a percentage point citing greater confidence on inflation.

The Fed projected a further halfpoint rate cut by the yearend, a full point next year and a halfpoint trim in 2026.

Monetary policy in the Gulf Cooperation Council often aligns with the Fed39;s decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia39;s benchmark index gained 0.4, with aluminium products manufacturer Al Taiseer Group rising 1 and ACWA Power Company advancing 3.9.

Qatar39;s benchmark index rose 0.3, led by a 0.7 increase in the Gulf39;s biggest lender Qatar National Bank.

Dubai39;s main share index added 0.3, with MashreqBank climbing 6.3.

The Israeli military launched a new wave of attacks against Hezbollah in southern Lebanon on Monday, it said in a statement.

In Abu Dhabi, the ADX General index was flat.

Reporting by Ateeq Shariff in Bengaluru; Editing by Varun H K

Source Reuters