Mideast Stocks: Most major Gulf markets ease on rate hikes woes, weak oil prices

Mideast Stocks: Most major Gulf markets ease on rate hikes woes, weak oil prices

Most Gulf stock markets fell in early trade on Tuesday due to concerns on rising interest rates and an escalation in the Ukraine war, with sentiment dented by retreating oil prices.

Saudi Arabia's benchmark index dropped 0.3%, on course to extend losses for a fourth session. Al Rajhi Bank lost 1.1%, while oil giant Aramco retreated 0.6%.

The Qatari index traded 0.7% lower, weighed down by a 1.6% fall in petrochemical maker Industries Qatar.

Crude prices, a key catalyst for the Gulf's financial markets, extended losses after near 2% in the previous session, as a stronger U.S. dollar and a flare-up in COVID-19 cases in China raised concerns of slowing global demand.

COVID-19 cases in the world's second-largest oil consumer rose to their highest since August, while its services activity in September contracted for the first time in four months, as pandemic restrictions weighed.

In Abu Dhabi, the index declined 0.4%, hit by a 0.6% fall in the country's biggest lender First Abu Dhabi Bank.

Dubai's main share index, however, bucked the trend edging 0.1% higher, helped by a 1% increase in budget airliner Air Arabia.

Separately, the United Arab Emirates government approved the federal budget for the fiscal years 2023-2026 on Monday, with a total expenditure