Mideast Stocks: Major Gulf Markets Mixed on US Rate Cut Bets

Major stock markets in the Gulf were mixed in early trade on Tuesday after dovish comments from Federal Reserve policymakers revived prospects of a U.S. rate cut in December.

Fed Governor Christopher Waller said on Monday that the labor market has softened sufficiently to justify a 25-basis-point rate cut at the December meeting, but any further easing will hinge on a wave of economic data that was delayed by the recent government shutdown.

His remarks follow New York Fed President John Williams' comment on Friday that interest rates are likely to decline “in the near term.”

Investors are now pricing in an 81% chance of a rate cut in December, up from 40% last week, as per the CME FedWatch Tool.

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

Dubai's main share index rose 0.4%, with toll operator Salik Company gaining 1.7% and blue-chip developer Emaar Properties climbing 1.1%.

Dubai approved a 2026-2028 budget with 302.7 billion dirhams ($82.42 billion) in expenditures and 329.2 billion dirhams ($89.64 billion) in revenues, the state news agency said on Sunday.

In Abu Dhabi, the index was up 0.2%.

Saudi Arabia's benchmark index eased 0.2%, hit by a 1.2% fall in oil behemoth Saudi Aramco and a 3.2% decline in Saudi Tadawul Group.

Saudi Aramco is exploring options to raise several billion dollars through the sale of various assets, according to Bloomberg News. 

Oil prices - a catalyst for the Gulf's financial markets - eased on Tuesday as concerns that supply will exceed demand next year outweighed worries that Russian shipments will remain under sanctions as talks to end the Ukraine war remain inconclusive.

The Qatari index dropped 0.7%, with Qatar Islamic Bank losing 0.7%.