Mideast Stocks: Major Gulf Bourses Fall on Weak Earnings, US Rate Cut Uncertainty

Major stock markets in the Gulf fell in early trade on Monday, driven by underwhelming corporate earnings and diminished expectations for further Federal Reserve rate cuts in December.

The U.S. Fed cut interest rates by 25 basis points for the second time this year on October 29, but Chair Jerome Powell's hawkish comments afterward cast doubt on the likelihood of further rate cuts in 2025.

Traders now assign a 71% probability to a rate cut in December, down from more than 90% earlier, according to CME's FedWatch Tool.

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 fell 0.3%, hit by a 5.6% slide in renewable energy utility firm ACWA Power Company , as the company failed to meet quarterly profit forecasts.

Among other fallers, petrochemical maker Saudi Basic Industries Corp (SABIC) retreated 2.2%, on course to extend losses, a day after reporting a steep fall in third-quarter profit.

Elsewhere, oil behemoth Saudi Aramco lost 0.7%.

Dubai's main share index dropped 1%, with blue-chip developer Emaar Properties losing 1.8%.

In Abu Dhabi, the index was down 0.3%, pressured by a 2.1% drop in Aldar Properties.

In the previous session, Aldar tumbled 3.8% after a media report indicated that Alpha Dhabi intends to divest a portion of its stake in the developer.

The Qatari index fell 0.2%, with the Gulf's biggest lender by assets Qatar National Bank losing 1.1%.