MIDEAST STOCKS-Gulf markets' rebound stalls after oil pulls back | Reuters:
"Most Gulf stock markets fell on Tuesday, ending a rally of several days, after the Brent oil price pulled back to near $60 a barrel, dampening sentiment among retail investors.
The bourses have been closely correlated to oil over the last several months because of concern that lower oil export revenues could cause Gulf governments to cut back spending, particularly in the countries with relatively weak state finances, Bahrain and Oman.
Major spending cuts look unlikely in big economies such as Saudi Arabia. The kingdom's Al-Madina newspaper, quoting unnamed sources, reported that the 2015 Saudi budget - set to be announced this week - was expected to rise marginally from the 2014 plan to a record 860 billion riyals ($229 billion), with the government using its huge fiscal reserves to cover a deficit."
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