Mideast Stocks: Most Gulf markets slide ahead of Fed rate decision

Mideast Stocks: Most Gulf markets slide ahead of Fed rate decision

Most Gulf stocks fell in early trade on Wednesday, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve later in the day.

The Fed is seen raising its benchmark lending rate by 75 basis points (bps) to tame persistently high inflation, although some traders are also expecting a full percentage point increase.

In Saudi Arabia, the benchmark index eased 0.2%, hit by a 2.3% fall Mouwasat Medical Services.

Most Gulf Cooperation Council countries, including Saudi, have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing the region to a direct impact from monetary tightening there.

Dubai's main share index retreated 1.3%, dragged by a 2.4% fall in sharia-compliant lender Dubai Islamic Bank and a 4.3% slide in diversified investment group Dubai Investments.

The Qatari index declined 0.7%, weighed down by a 1.4% fall in petrochemical maker Industries Qatar.

In Abu Dhabi, the index gained 0.3%. The country's biggest lender First Abu Dhabi Bank rose 0.2%.

Crude prices, a key catalyst for the Gulf's financial markets, jumped more than 2% after Russian President Vladimir Putin announced a partial military mobilisation, escalating the war in Ukraine and raising concerns of tighter oil and gas supply.

(Reporting by Ateeq Shariff in