Mideast Stocks: Major Gulf Markets Muted on Soft Oil Prices Ahead of Fed Meeting

Major stock markets in the Gulf were muted in early trade on ‍Tuesday, pressured ‍by weaker oil prices and caution over the ​Federal Reserve's policy outlook ahead of a widely expected U.S. interest ⁠rate cut this week.

Recent data showed that the U.S. ⁠Personal Consumption Expenditures (PCE) Price ‌Index, the Fed's preferred inflation measure, met expectations, while consumer sentiment improved in December.

In November, private ⁠payrolls saw their steepest decline in more than two-and-a-half years, but jobless claims for the week ended November 28 fell to their lowest level in three years.

According ⁠to CME's FedWatch Tool, ​markets are now pricing in an 89% chance of a quarter-point rate ‍cut at the Fed's December 9–10 meeting.

Oil prices - a catalyst for the ​Gulf's financial markets - edged down, extending losses from the 2% drop on Monday, with markets keeping a close eye on peace talks to end Russia's war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.

Saudi Arabia's benchmark index edged 0.1% higher, helped by a 0.7% rise in Al Rajhi Bank.

Elsewhere, Consolidated Grunenfelder Saady Holding ⁠Co began trading 3% higher at 10.30 ‌riyals per share in its market debut.

Dubai's main share index eased 0.1%. In Abu Dhabi, the index added 0.1%.

The ‌Qatari ⁠benchmark was up 0.2%, with Qatar Islamic Bank gaining 1.1%.