Mideast Stocks: Most Gulf Markets Gain on US Rate Cut Bets

Most major stock markets in the Gulf rose in early trade on Tuesday, aided by rising hopes for a December rate reduction from the Federal Reserve and indications that the U.S. government shutdown is nearing an end.

Last week, data revealed that the U.S. economy had lost jobs in October, driven by declines in the retail sector and the government.

And on Friday, a survey showed that U.S. consumer sentiment weakened to a 3-1/2-year low in early November due to worries about the economic effects of the shutdown.

Important economic metrics, including the non-farm payrolls report, have been delayed by the shutdown.

Saudi Arabia's benchmark index added 0.1%, helped by a 0.7% rise in Al Rajhi Bank and a 4.9% jump in Dar Al Arkan Real Estate Development, on course to extend gains following a steep rise in quarterly earnings.

Shares of Kingdom Holding - the investment firm controlled by billionaire Prince Alwaleed Bin Talal - jumped 3% on a 129% increase in third-quarter profit.

On the downside, oil firm Saudi Aramco fell 0.2%.

Oil prices dipped in Asian trading as oversupply concerns outweighed uncertainty over the impact of U.S. sanctions on Russian oil majors Rosneft and Lukoil.

Saudi Advanced Industries tumbled 6.4% - its biggest decline since August - after reporting a 99% plunge in third-quarter profit.

Dubai's main share index gained 0.5%, with blue-chip developer Emaar Properties climbing 1.9%.

Traders are pricing in a roughly 64% probability that the Fed will cut rates by 25 basis points next month, according to CME Group's FedWatch tool.

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

Abu Dhabi's index was flat.

The Qatari index added 0.4%, led by a 1.5% rise in Qatar Islamic Bank.