Mideast Stocks: Major Gulf Markets Mixed on US Rate Cut Hopes, Falling Oil

Major stock markets in the Gulf were mixed in early trade on Tuesday as lower oil prices tempered growing expectations of further Federal Reserve rate cuts.

Recent U.S. economic data have had traders pricing in a roughly 89% chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group's FedWatch tool.

Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI, and the non-farm payrolls report on Friday for further clues on the economy's health.

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

Saudi Arabia's benchmark index gained 0.6%, on course to extend gains from the previous session. It was led by a 0.9% rise in Al Rajhi Bank and an 8% surge in Dar Al Arkan Real Estate Development Company.

Dar Global - the international arm of Dar Al Arkan Real Estate Development - plans to build a $1 billion Trump Plaza project in Saudi Arabia's Jeddah as U.S. President Donald Trump's family business expands in the Gulf, the company said on Monday.

In Qatar, the index added 0.5%, with Qatar Gas Transport Co advancing 2.2%.

Dubai's main share index dropped 0.9%, hit by a 1.1% fall in blue-chip developer Emaar Properties.

The Abu Dhabi index eased 0.2%.

Oil prices - a catalyst for the Gulf's financial markets - fell as another anticipated production increase by OPEC+ and the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced the outlook for a looming supply surplus.