Major Gulf bourses in red on revived inflation fears | Reuters

Major Gulf bourses in red on revived inflation fears | Reuters

Major stock markets in the Gulf fell in early trade on Wednesday, tracking Asian shares as persistent worries about interest rates and inflation remained a key focus for investors.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 1.39%.

Saudi Arabia's benchmark index (.TASI) dropped 1.5%, dragged down by a 2.4% fall in Al Rajhi Bank (1120.SE) and a 2.9% decline in Sahara International Petrochemical Company (2310.SE).

Oil prices, a key catalyst for the Gulf's financial market, skidded more than $6 a barrel amid a push by U.S. President Joe Biden to bring down soaring fuel costs.

Seven oil companies are set to meet Biden on Thursday, under pressure from the White House to drive down fuel prices as they make record profits.

The energy index (.TENI) in Saudi Arabia was down 0.6%.

The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, retreated 1.4%, with blue-chip developer Emaar Properties (EMAR.DU) declining 2.8%.

In Abu Dhabi, the index (.FTFADGI) fell 1.2%, hit by a 1.1% drop in First Abu Dhabi Bank (FAB.AD), United Arab Emirates' biggest lender.

Economists polled by Reuters expect the U.S. Federal Reserve will deliver another 75-basis-point interest rate hike next month, followed by a half-percentage-point rise in September, and won't scale back to quarter-percentage-point moves until November at the earliest. read more

The Qatari index (.QSI) lost 0.2%, with Commercial Bank (COMB.QA) trading 1.1% lower.