Mideast Stocks: Major Gulf Bourses Mixed on US Fed Independence Concerns

Major stock markets in the Gulf were mixed in early trade on Wednesday as concerns persisted about the U.S. Federal Reserve's independence following President Donald Trump's attempt to dismiss Fed Governor Lisa Cook. 

Trump said he was removing her over alleged improprieties in obtaining mortgage loans, a step that could test the boundaries of presidential power over the U.S. Fed.

Cook said Trump has no authority to fire her from the central bank, and she will not resign.

Saudi Arabia's benchmark index eased 0.3%, hit by a 0.8% fall in Al Rajhi Bank and 1.6% decrease in the country's biggest lender Saudi National Bank.

In Qatar, the index eased 0.3%, hit by a 0.6% fall in the Gulf's biggest lender Qatar National Bank. Oil prices - a catalyst for the Gulf's financial markets - steadied, after falling in the previous session, as investors watched for developments in the Ukraine war and assessed the impact of new U.S. tariffs on India, the world's third-biggest crude consumer.

Dubai's main share index added 0.3%, helped by a 1% gain in blue-chip developer Emaar Properties. In Abu Dhabi, the index was up 0.2%. The focus shifts to the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, due on Friday, for clues on the interest rate path after dovish remarks from Powell at Jackson Hole symposium last week.

Markets have priced in an 87% chance of a quarter-point rate cut at the Fed's September 17 policy meeting, according to CME FedWatch Tool.

The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.