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

Major Gulf stock markets traded mixed early on Monday, as optimism rose over a potential U.S. Federal Reserve rate cut, even as softer oil prices weighed on sentiment. 

Dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker-than-expected U.S. economic data, have solidified market expectations for a December rate cut. CME FedWatch Tool currently prices in an 87% probability of easing from 30% earlier in November.

Core U.S. Personal Consumption Expenditures figures on Friday could provide further cues on the Fed's monetary policy path.

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

Dubai's main share index gained 0.4%, with blue-chip developer Emaar Properties rising 0.8%, while Dubai Electricity and Water Authority advanced 1.9%.

In Abu Dhabi, the index rose 0.4%, set to end a five-day losing streak, with the country's biggest lender by assets First Abu Dhabi Bank edging 0.1% higher.

Saudi Arabia's benchmark index dropped 0.7% on a 1.3% fall in Al Rajhi Bank and a 0.7% slide in oil major Saudi Aramco.

Oil prices - a catalyst for the Gulf's financial markets - climbed 2% after OPEC+ members reaffirmed a plan to hold output steady and as the Caspian Pipeline Consortium halted exports following a major Ukrainian drone attack. U.S.-Venezuela tensions also raised concerns about supply.

Brent crude futures advanced $1.22, or 1.96%, to $63.60 a barrel at 0732 GMT. The contract settled down on Friday for the fourth consecutive month, its longest losing streak since 2023, as expectations for higher global supply weighed on prices.

Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.

The Qatari benchmark eased 0.2%.