Mideast Stocks: Major Gulf Markets Mixed on Weaker Oil

Major stock markets in the Gulf were mixed in early trade on Wednesday, weighed down by softer oil prices, as investors look to U.S. economic data this week that could influence the Federal Reserve's monetary policy moves.

Oil prices, a catalyst for Gulf financial markets, slipped for a second consecutive session, as traders awaited the outcome of Russia-Ukraine peace talks that could boost supply, while concerns over a potential surplus grew amid rising inventories.

Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

Saudi Arabia's benchmark index eased 0.3%, with Al Rajhi Bank losing 0.3% and oil behemoth Saudi Aramco retreating 0.5%.

The kingdom approved its state budget for 2026 on Tuesday, forecasting a narrower fiscal deficit of 165 billion riyals ($44 billion), or about 3.3% of gross domestic product, as it shifts spending to priority sectors such as industry and logistics in a push to increase non-oil revenue.

The Qatari index eased 0.1%, with the Gulf's biggest lender Qatar National Bank losing 0.4%.

Dubai's main share index advanced 0.6%, with top lender Emirates NBD gaining 2.9%.

In Abu Dhabi, the index was up 0.7%.

Stock markets in the United Arab Emirates resumed trading after a two-day hiatus for its National Day celebrations.

Investors are closely watching upcoming releases, including Wednesday's November ADP private payrolls report and Friday's delayed September Personal Consumption Expenditures (PCE) Index—the Federal Reserve’s preferred measure of inflation.

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

U.S. rate futures are now assigning an 88% probability of a Federal Reserve rate cut at next week’s meeting, up from 85% a week earlier, CME’s FedWatch Tool shows.

($1 = 3.7527 riyals)