Shafaq News/ On Friday, stock markets in the United Arab Emirates edged higher, supported by positive investor sentiment following favorable US inflation data and rising expectations of a potential rate cut by the Federal Reserve.

The improvement in sentiment was driven by US data indicating a moderation in inflation alongside strong retail spending.

In the Gulf Cooperation Council (GCC) region, which includes the UAE, monetary policy is guided by the Federal Reserve due to the pegging of most regional currencies to the US dollar.

In Dubai, the main share index climbed 0.6%, marking its third consecutive session of gains. Emirates NBD Bank saw a modest increase of 0.3%, while Watania International Holding surged 14.3% after announcing quarterly profits.

Conversely, Emaar Properties, a leading blue-chip developer, declined by 1.8%.

Abu Dhabi's benchmark index also posted its third straight session of gains, rising 0.5%, with conglomerate International Holding Company up 0.9% and ADNOC Distribution up 2.6%.

For the week, Dubai’s index recorded a slight decline of 0.2%, while Abu Dhabi’s index gained 1.4%.