Mideast Stocks: Most Gulf Markets Ease on Economic Uncertainty

Most stock markets in the Gulf ended lower on Monday, unsettled by the U.S. government shutdown and economic uncertainty, although prospects of further U.S. Federal Reserve rate cuts and rising oil prices limited losses.

Dubai's main share index dropped 0.2%, with toll operator Salik Company losing 1.5%. In Abu Dhabi, the index eased 0.1%.

Saudi Arabia's benchmark index, however, gained 0.7%, led by a 4.6% rise in Saudi Arabian Mining Company . Among other gainers, oil behemoth Saudi Aramco added 0.2%.

Oil prices - a key catalyst for the Gulf's financial markets - rose more than 1% after OPEC+'s planned production increase for November was more modest than expected, tempering some concerns about supply additions, though a soft outlook for demand is likely to cap near-term gains.

Market participants likewise evaluated President Donald Trump's blueprint for concluding the two-year-old Gaza war, seeking relief from persistent geopolitical strains.

The Qatari index declined 0.3%, hit by a 1.5% fall in Qatar Gas Transport. U.S. Federal Reserve Governor Stephen Miran pressed for an aggressive rate-cut trajectory again on Friday, citing the impact of the Trump administration's economic policies.

Investors are now pricing in a 25-basis-point cut at the Fed meeting this month, with an additional 25-bp cut anticipated in December. 

The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.

Outside the Gulf, Egypt's blue-chip index fell 0.3%, stepping back from record highs.

Saudi Arabia gained 0.7% to 11,605

Abu Dhabi fell 0.1% to 10,063

Dubai down 0.2% to 5,908

Qatar dropped 0.3% to 10,889

Egypt eased 0.3% to 37,095

Bahrain lost 0.1% to 1,966

Oman declined 0.5% to 5,185

Kuwait was flat at 9,319