Mideast Stocks: Major Gulf Bourses Track Asian Shares Lower

Major stock markets in the Gulf fell in early trade on Tuesday in line with Asian shares after U.S. President Donald Trump's removal of Federal Reserve Governor Lisa Cook, a decision that erodes trust in U.S. assets and the independence of the central bank.

Trump on Monday took the unprecedented action of firing Cook, the first African-American woman to serve as a Fed governor, over claims of mortgage borrowing impropriety.

Saudi Arabia's benchmark index eased 0.1%, hit by a 0.3% fall in Al Rajhi Bank and a 1.3% decrease in ACWA Power Company.

Asian stock markets dropped, mirroring Wall Street's decline, as Trump's removal of Cook clouded Fed policy and rate cut expectations. 

On Friday, Fed Chair Jerome Powell signalled a possible rate cut at the Fed's meeting next month, saying that risks to the job market were rising but inflation remained a threat, and that a decision wasn't set in stone.

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

Dubai's main share index dropped 0.3%, weighed down by a 1.4% fall in blue-chip developer Emaar Properties .

In Abu Dhabi, the index was down 0.2%. Oil prices - a catalyst for the Gulf's financial markets - edged down after surging nearly 2% in the previous session, with traders keeping a close eye on developments surrounding the Ukraine war that could disrupt Russian fuel supplies.

The Qatari benchmark lost 0.1%, with the Gulf's biggest lender Qatar National Bank falling 0.4%.