Major Gulf stock markets edged up in early trade on Thursday after a U.S. rate cut, healthy local corporate earnings and a trade detente between U.S. and China, although worries that the progress between the two countries may be fleeting capped gains.

On the day, U.S. President Donald Trump said he had made a deal with Chinese President Xi Jinping on rare earths and tariffs. Gulf countries trade heavily with the two nations.

But global markets sold off, as traders have seen previous promising starts followed by setbacks.

On Wednesday, the Federal Reserve lowered rates, in line with market expectations. However, it signalled that it might be the last cut of the year as the ongoing government shutdown threatens data availability.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

Saudi Arabia's benchmark index was up 0.2%, helped by a 1.5% rise in ACWA Power COmpany and a 0.4% increase in oil behemoth Saudi Aramco.

Elsewhere, insurer Bupa Arabia advanced 6% following a quarterly profit rise.

Among other gainers, Arabian Drilling jumped 10% - set for its largest intraday gain since its 2022 listing - after receiving resumption notices for two offshore rigs. They will commence operations in the first quarter of 2026 and drive 100% utilisation in the offshore segment by the second quarter.

Abu Dhabi index added 0.2%, with Emirates Telecommunications Group gaining 2.2% after it reported a 1% increase in third-quarter profit and around 30% revenue jump.

Dubai's main share index inched 0.1% higher, with Parkin Company putting on 1.3%.

The Qatari index rose 0.1%, bolstered by a 3.6% leap in telecom firm Ooredoo after its board approved raising the target dividend payout range to 50%-70% of normalised net profit, up from 40%-60%.

The firm also posted an 11% rise in third-quarter profit.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)