European stocks had also nudged higher on Monday with the European Central Bank seen cutting rates by 10 basis points on Thursday.
“The likelihood of easing by the Fed is supportive for equity markets, but the probability of a 25 basis point rate cut has already been factored in for the most part,” Soichiro Monji, senior strategist at Sumitomo Mitsui DS Asset Management, told Reuters.
Oil prices edged lower on Tuesday after surging on Monday after Iran’s seizure of a British tanker last week that stoked fears of supply disruptions from the energy-rich Gulf.
Brent crude LCOc1 futures slipped 2 cents on Tuesday to $63.24 a barrel by 0121 GMT.
West Texas Intermediate (WTI) crude CLc1 futures were down 6 cents, or 0.11% at $56.16 per barrel.
Prices retreated on Tuesday as the International Energy Agency (IEA) said it would act quickly if needed to keep the market supplied.
“The IEA is ready to act quickly and decisively in the event of a disruption to ensure that global markets remain adequately supplied,” it said, adding that executive director Fatih Birol has been in talks with IEA members, associate governments and other nations.
“Consumers can be reassured that the oil market is currently well supplied, with oil production exceeding demand in the first half of 2019, pushing up global stocks by 900,000 barrels per day,” the IEA said in a statement.
Middle East markets
Saudi Arabia’s stock market index fell 0.6%. The kingdom's largest petrochemical maker Saudi Basic Industries shed 1.8% and its biggest lender National Commercial Bank was down 0.7%.
Dubai's main index was up 1.3%. Emaar Properties climbed 2.5% after it struck a deal with Beijing Daxing International Airport for joint execution of an $11 billion project. Emaar Development and Emaar Malls rose 2.8% and 2.6%, respectively.
The Abu Dhabi index gained 1.2%, rising for a fifth day running, boosted by First Abu Dhabi Bank which closed 1.5% higher after reporting a 5% rise in second-quarter net profit. Aldar Properties rose 2.6%.
Qatar’s index rose 0.4%. The Gulf's largest lender Qatar National Bank closed 1.5% up and Industries Qatar rose 1%.
Egypt's blue-chip index also closed 0.8% higher with market heavyweight lender Commercial International Bank gaining 1.2%.
Kuwait’s premier market index was mainly flat, Bahrain’s index dropped 0.5% and Oman’s index edged 0.2% lower.
The dollar gained early on Tuesday.
The dollar index .DXY, which measures the greenback against a basket of six major currencies, rose 0.15% to 97.380.
Gold prices retreated on a stronger dollar.
Spot gold was down 0.5% at $1,417.11 per ounce as of 0120 GMT.
U.S. gold futures slipped 0.5% to $1,419.30 an ounce.
(Reporting by Gerard Aoun; Editing by Mily Chakrabarty)
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