Mideast Stocks: Most Gulf markets in red on weak oil, Fed policy jitters

Mideast Stocks: Most Gulf markets in red on weak oil, Fed policy jitters

Most stock markets in the Gulf ended lower on Monday, with the Saudi index hitting a 20-month low ahead of interest rate decisions from the U.S. Federal Reserve and other major central banks, while soft oil prices added to concerns.

The Fed is widely expected to raise rates by 50 basis points at its last meeting of 2022 on Wednesday. Investors will also focus on the central bank's updated economic projections and Fed Chair Jerome Powell's press conference.

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 a direct impact from monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index dropped 1%, hitting its lowest since April last year, with Retal Urban Development Co shedding 3.5%.

Elsewhere, oil giant Saudi Aramco retreated 1.9%. Dubai's main share index lost 0.2%, hit by a 1.3% fall in sharia-compliant lender Dubai Islamic Bank.

In Abu Dhabi, the index finished 0.9% lower, falling a fifth session. Crude oil prices - a key catalyst for the Gulf's financial markets - dipped, deepening a multi-week decline, as a weakening global economy offset supply challenges stemming