Major Gulf bourses slide ahead of Fed meeting | Reuters

Major Gulf bourses slide ahead of Fed meeting | Reuters

Most major Gulf equities were subdued in early trade on Wednesday, ahead of the U.S. Federal Reserve's policy meeting, with many fearing a drastic action would risk tipping the world into recession.

Investors have dramatically raised their bets that the Fed will raise interest rates by 75 basis points (bps) rather than 50 bps on Wednesday, a swing in expectations that has fuelled a violent selloff across world markets. read more

In Abu Dhabi, the index (.FTFADGI) lost 0.3%, hit by a 1.2% fall in telecoms firm Emirates Telecommunications Group (ETISALAT.AD) and a 0.1% decrease in the country's biggest lender First Abu Dhabi Bank (FAB.AD).

Dubai's benchmark index (.DFMGI) eased 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) losing 1.8%.

The Qatari index (.QSI) retreated 0.5%, weighed down by a 3% fall in Commercial Bank (COMB.QA).

Saudi Arabia's benchmark index (.TASI), however, bucked the trend to trade 0.6% higher, with Al Rajhi Bank (1120.SE) rising 0.7% and Banque Saudi Fransi (1050.SE) advancing 2.4%.

Oil prices, a key catalyst for the Gulf's financial markets, edged up after the Organization of the Petroleum Exporting Countries (OPEC) stuck to its forecast that world oil demand will exceed pre-pandemic levels in 2022.

Saudi Arabia's consumer price index rose 2.2% in May from a year earlier, government data showed on Wednesday, slowing from a 2.3% pace in April. read more