Mideast Stocks: Major Gulf bourses mixed in early trade on economic worries

Mideast Stocks: Major Gulf bourses mixed in early trade on economic worries

Major stock markets in the Gulf were mixed in early trade on Thursday as recession fears grew in United States.

U.S. consumer confidence dropped to a nine-month low in April as worries mounted, heightening the risk of the economy falling into recession this year.

Saudi Arabia's benchmark index dropped 0.3%, on course to snap a six days of gains, with Al Rajhi Bank losing 1.7%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

Investors are also worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to monetary tightening in the world's largest economy.

In Abu Dhabi, the index gained 0.5%.

Oil prices - a key catalyst for the Gulf's financial markets - rose slightly, finding some support after heavy losses in the previous two sessions driven by fears of a U.S. recession and an increase in Russian oil exports which dulled the impact of OPEC production cuts.

Dubai's main share index added 0.4%, with its top lender Emirates