Mideast Stocks: Most Gulf markets in red on fears of global economic slowdown

Mideast Stocks: Most Gulf markets in red on fears of global economic slowdown

Most Gulf stock markets fell in early trade on Tuesday, in line with Asian peers and subdued oil prices, after U.S. economic data prompted bets that the Federal Reserve would get more aggressive with interest rate hikes to battle inflation.

Traders are awaiting the minutes of the latest Fed meeting, due on Wednesday, after recent data on core inflation raised the risk of interest rates remaining higher for longer.

Saudi Arabia's benchmark index dropped 0.5%, and is on course to extend losses for a third session, weighed down by a 0.6% rise in Retal Urban Development Co and a 2.9% decrease in Riyad Bank.

The market is now pricing U.S. interest rates to peak at 5.30% in July and remain above 5% by the end of the year, moving away from expectations of deeper rate cuts this year.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely.

In Qatar, the index dropped 0.5%, with Qatar Islamic Bank losing 1.4%.

Oil prices - which fuels growth in Gulf economies - fell as fears that a global economic slowdown would reduce fuel demand prompted investors to take profits