Mideast Stocks: Most Gulf markets ease on hawkish Fed; Dubai rises

Mideast Stocks: Most Gulf markets ease on hawkish Fed; Dubai rises

The major stock markets in the Gulf, with the exception of Dubai, were subdued in early trading on Thursday, tracking Asian shares lower after the U.S. Federal Reserve maintained its hawkish stance. 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 0.3%, on course to extend losses from the previous session, weighed down by a 0.8% fall in Al Rajhi Bank and a 1.2% decline in Riyad Bank. Prices of oil - a key catalyst for the Gulf's financial markets - slipped in Asian trade as fears of a sluggish demand recovery in China, the world's top crude importer, offset the prospect of tighter supply, with top exporters Saudi Arabia and Russia cutting output. In Abu Dhabi, the index eased 0.1%. The Qatari index fell 0.1%, with Qatar Gas Transport Co losing 1.5% and Qatar Islamic Bank retreating 0.7%. On the other hand, Dubai's main share index advanced more than 1% to its highest since 2015, led by a 2.3%