Mideast Stocks: Gulf bourses slide before Fed meeting on higher rate bets

Mideast Stocks: Gulf bourses slide before Fed meeting on higher rate bets

Most major Gulf equity market were subdued on Tuesday as investors remained cautious ahead of a U.S. Federal Reserve policymaking meeting, with many fearing interest rates would remain higher for longer.

Investors were awaiting a speech by Fed Chairman Jerome Powell at the Economic Club of Washington later on Tuesday.

The Fed is likely to need to lift the benchmark interest rate above 5% to curtail high inflation.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes, exposing the region to the direct impact from any monetary tightening by the Fed.

The Qatari Stock index fell 0.5%, dragged down by losses in financial and material sectors, with the Gulf's largest lender Qatar National Bank dropping 1.9%, while heavyweights Qatar Commercial Bank and Masraf Al Rayan were down 1.2% and 1.1% respectively.

However, Doha Bank gained 1.8% after reporting a rise in full-year net profit of 765.4 million riyals($210.27 million) riyals.

Dubai's benchmark stock index was flat, as gains in industrial stocks were capped by losses in financial stocks. Tolls operator Salik gained 1.5%, while lender Dubai Islamic Bank was down 0.4%.

Utility provider National Central Cooling declined 1.1% and Gulf Navigation Holding